When using the model E(y) = β0 + β1x for one qualitative independent variable with a 0-1 coding convention, β1 represents the difference between the mean responses for the level assigned the value 1 and the base level.

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In a model with a qualitative independent variable coded as 0-1, β1 represents the change in the mean response when the variable changes from the base level (coded as 0) to the level coded as 1.

When Using the Model E(y) = β0 + β1x for One