Abstract
This chapter adds sophistication to the regression equation through interaction terms. By including an extra term in the equation, we allow for the effect of an independent variable to change with the level of another independent variable. In the example, we use an interaction term to account for the effect of some variables on the efficiency of a truck to be different for different types of motor.
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Canela, M.Á., Alegre, I., Ibarra, A. (2019). Interaction. In: Quantitative Methods for Management. Springer, Cham. https://doi.org/10.1007/978-3-030-17554-2_7
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DOI: https://doi.org/10.1007/978-3-030-17554-2_7
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Publisher Name: Springer, Cham
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Online ISBN: 978-3-030-17554-2
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