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Suppose we have a linear model where ${variety_i}$ is an indicator for types of plant (A,B,C,D).

$y_i = \mu + \beta{variety_i} + \beta_1 rain_i + \epsilon_i$

So we would have $\beta_A , \beta_B, \beta_C, \beta_D$. Now here the reference would be A so then would we say $\beta_A = 0$?

Also, if I plot this model in R, is the (intercept term) just equal to $\mu + \beta_A$?

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Depending on the restriction you set. You can set any of them as 0 or set the sum as zero.

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  • $\begingroup$ Thank you for the response! How are we able to just set them as 0? Also, if I plot this model in R, is the (intercept term) just equal to $\mu + \beta_A$? $\endgroup$
    – Jdoe
    Commented May 28, 2020 at 23:06
  • $\begingroup$ If you code in R, it uses corner stone restriction, i.e. set beta_a as 0 $\endgroup$
    – Jeremy Dai
    Commented Jun 1, 2020 at 20:37

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