A dummy independent variable (also called a dummy explanatory variable) which for some observation has a value of 0 will cause that variable's coefficient to have no role in influencing the dependent variable, while when the dummy takes on a value 1 its coefficient acts to alter the intercept. For example, suppose membership in a group is one of the qualitative variables relevant to a regression. If group membership is arbitrarily assigned the value of 1, then all others would get the value 0. Then the intercept would be the constant term for non-members but would be the constant term plus the coefficient of the membership dummy in the case of group members.