In trying to obtain 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 average amount the repeat students tended to be above or below
non-repeaters, with all other factors the same.
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