In trying to construct a model to estimate grades on a statistics test, a professor wanted to include, among other factors, whether the person had taken the course previously. To do this, the professor included a dummy variable in her regression that was equal to 1 if the person had previously taken the course, and 0 otherwise. The interpretation of the coefficient associated with this dummy variable would be the mean amount the repeat students tended to be above or below non-repeaters, with all other factors the same.

Question

Quizplus · Accepted Answer

This is the correct interpretation of the coefficient associated with the dummy variable in the regression. It measures the difference in mean grades between students who repeated the course and those who did not, controlling for other factors in the model.

In Trying to Construct a Model to Estimate Grades on a Statistics