What is an interaction effect in regression analysis?

  • It's when one variable has a stronger effect than another
  • It's when the effect of one variable changes based on the level of another variable
  • It's when two variables have no effect on each other
  • It's when two variables have the same effect on the dependent variable
An interaction effect in regression analysis is when the effect of one independent variable on the dependent variable changes based on the level of another independent variable. This is captured by including an interaction term in the regression model.
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