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st: Re: Why main effects are significant but interction term is not signficant
From
Mike <[email protected]>
To
[email protected]
Subject
st: Re: Why main effects are significant but interction term is not signficant
Date
Tue, 8 Mar 2011 02:22:28 -1000
y= beta+beta1*x1+beta2*x2+beta3*x1*x2+epsilon
You can think of y as income, x1 is gender (1 for male) and x2 is the
educational level.
The OLS gives a significant results for beta1 and beta2 but not
beta3. In the context of the example, male and higher education help
having higher income. But the interaction of male and higher education
doesn't have any significant effect on income. Can you provide some
insights?
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