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Indicator coefficients and reference categories

The questions ask you to say what a coefficient means given how the model was parameterised, and to recover a group gap that varies. The algebra returns easily; remembering that a main effect is the effect at a particular point is what needs practice.

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What this covers

  • Interpret indicator and interaction coefficients

    Given a model containing indicators and interactions, the learner can state what each coefficient means, identify the reference point it depends on, and recover a quantity of interest from the parameterisation.

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