In a regression model that includes a dummy variable for a categorical group, what does the dummy coefficient typically represent?

In a regression model that includes a dummy variable for a categorical group, what does the dummy coefficient typically represent?

• A. The difference in the outcome between the group and the reference category.
• B. The overall average of all groups.
• C. The slope of the predictor variable across all data.
• D. The variance of the error term.

Answer: (A)