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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 model 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.
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