Adding an interaction term to a regression model becomes necessary when the relationship between an explanatory variable and an outcome variable depends on the value/level of another explanatory variable. Although the addition of an interaction term can result in a more meaningful empirical model, it simultaneously complicates the interpretation of model coefficients. In this article, we are going to learn how to interpret the coefficients of a regression model that includes a two-way interaction term. By the end of this article, we should understand how the interpretation of model coefficients differs between a model with an interaction term and a model without an interaction term. We are going to use the statistical software R for building the models and visualizing the outcomes.
May-23-2020, 11:33:29 GMT