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Talk:Interaction variable

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This is an old revision of this page, as edited by Bkwillwm (talk | contribs) at 23:05, 29 August 2007 (multicollinearity). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

hi, sorry, if my example is biased towards my experience... if it doesnt make sense or someone thinks they can simplify it further please do :) Tmov81 02:27, 12 December 2006 (UTC)[reply]

Interaction and multicollinearity

Including interaction variables doesn't cause problems with multicollinearity (except maybe in some rare and not very noteworthy cases). If you have two variables in a regression model and you multiply them together and use the product as a third variable, the third variable can not be collinear with the other variables because it is their product.--Bkwillwm 23:05, 29 August 2007 (UTC)[reply]

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