The coefficients for the dummy variables reflect the change in the dependent variable when comparing one category of the qualitative variable to the base category (the one with all zeros).

Question

Quizplus · Accepted Answer

The coefficients of dummy variables in a regression model indeed represent the difference in the dependent variable when moving from the reference category (base category) to the category represented by the dummy variable, holding all other variables constant.

The Coefficients for the Dummy Variables Reflect the Change in the Dependent