Consider the following
In this, example the Binary Dummy Variable Has No Excuse
Vote-by-Mail in a Linear Regression where the dependent variable is the voter turnout rate in the state as a percentage in decimal form.
The Binary Dummy Variable Has No Excuse Vote-by-Mail takes a value of “Y” if the state allows voters to vote-by-mail without requiring an excuse for missing in-person voting and takes a value of “N” if the state doesn’t allow this. Suppose the excluded category is “N”. The coefficient on the category “Y” is 0.098. Republican Vote Share is another independent variable with the coefficient −0.478. What is the interpretation of the coefficient on the category “Y”?
If the state allows voters to vote-by-mail without requiring an excuse for missing in-person voting then the voter turnout rate will increase by an amount of 0.098 as compared to the voter turnout rate of voters when the state does not allow voters to vote-by-mail without requiring an excuse for missing in-person.
And the coefficient of Republican Vote Share will be interpreted as if there is a unit increase in Republican Vote Share then the Voter turnout rate will decrease by an amount of 0.478.
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