How to include a product of two indicator variables in a regression, and how this affects model

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How to include a product of two indicator variables in a regression, and how this affects model interpretation, giving an example.

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Principles Of Econometrics

ISBN: 9781118452271

5th Edition

Authors: R Carter Hill, William E Griffiths, Guay C Lim

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Question Posted: Mar 30, 2024 11:01 AM

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How to include a product of two indicator variables in a regression, and how this affects model

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Including a product of two indicator variables in a regression allows you to capture the interaction or combined effect of two categorical variables on the dependent variable This interaction term hel...View the full answer

Principles Of Econometrics

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