When performing a multiple regression with dummy variables, is it really necessary to include an intercept term in the design matrix?
By dummy variables, I mean indicator variables; a one in the design matrix if some effect is present, and a zero if not. It seems to me that without the intercept it is simpler to interpret the OLS solution. Instead of
$\beta_{0}$ = $\mu_{A}$ (where $\beta_{0}$ is the intercept)
$\beta_{1}$ = $\mu_{B} - \mu_{A}$
$\beta_{2}$ = $\mu_{C} - \mu_{A}$
etc.
We have
$\beta_{1}$ = $\mu_{A}$
$\beta_{2}$ = $\mu_{B}$
$\beta_{3}$ = $\mu_{C}$
etc.
Do the computations of $R^{2}$, the F-statistic and t-statistics change?
What if a continuous independent variable is then included?