Elementary Statistics for Public Administration An Applied Perspective

When the effect of one independent variable on the dependent variable is conditional upon values of another dependent variable, we have an interactive relationship.If the effect of one variable on the dependent variable changes across various values of a second independent variable, we have an interactive relationship.This chapter provides examples of interactive relationships and how to model them using an interaction term in a linear regression.Attention is given to how to interpret interaction terms in linear regression and statistical significance for both interactions with interval level variables and dummy variables.Marginal effects graphs are illustrated to further explain interactive relationships.