1 / 9

Understanding Interaction Terms in Regression Analysis

This lecture focuses on interaction terms in regression analysis, specifically interactions between independent variables. We explore both binary and continuous variables with detailed examples, such as TestScore and English learners. Key concepts include when interaction terms become positive, interpreting coefficients, and calculating marginal effects. This session equips students with the skills to analyze interactions effectively in data sets, advancing their understanding of statistical models.

gerik
Télécharger la présentation

Understanding Interaction Terms in Regression Analysis

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Lecture 25 (Dec.4) In the last lecture, we covered • Log-log specification • Interaction term This lecture introduces you to • Interaction term

  2. Interactions Between Independent Variables (SW Section 8.3)

  3. (a) Interactions between two binary variables When does this term become positive?

  4. Interpreting the coefficients What is the marginal effect of D1: 0→1 if D2=0? What is the marginal effect of D1: 0→1 if D2=1?

  5. Interpreting the coefficients What is the marginal effect of D1: 0→1 if D2=0? What is the marginal effect of D1: 0→1 if D2=1?

  6. Interpreting the coefficients What does β3 represent?

  7. Example: TestScore, STR, English learners • What is the “Effect” of HiSTR when HiEL = 0 ? • What is the “Effect” of HiSTR when HiEL = 1 ? • What do you conclude from the above result?

  8. (b) Interactions between continuous and binary variables When does this term become positive?

  9. Binary-continuous interactions: the two regression lines

More Related