How do you interpret coefficient of binary variable in linear regression? - Answers

This is my best shot. I've been trying to find this answer since I'm doing regressions right now. Let's say you have a dummy variable "male" where 1 = male, 2 = female. You regress: toads_owned = c(1) + c(2)*male You get the result: MALE: Coefficient: 2 T-test: 3.1 toads_owned = c(1) + 2*male So now, I think that means that if you are a male, you are likely to own 2 more toads on average than if you were a female. The coefficient on a dummy variable simply says how different you are from the base group (the group that equals 0) if you equal 1.