My dictionary says "Hoosier" is an Americanism probably originating as a
dialectal term (Cumberland dialect) HOOZER,  meaning "something big."  Now
it refers to an inhabitant or native of Indiana in the U.S., and Indiana is
sometimes called "The Hoosier State."  There is an element of poking fun at
themselves in the Indianans' use of this word, something like a New England
native calling himself a "Yankee" or "Yank."      Best,  Helen H. Gordon

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