Can you have an interaction term between two dummy variables?

Yes it is perfectly possible. You need to include the interaction term into your model.

What is interaction effect in dummy variable model?

Interaction effects indicate that a third variable influences the relationship between an independent and dependent variable. In this situation, statisticians say that these variables interact because the relationship between an independent and dependent variable changes depending on the value of a third variable.

Can you have an interaction between two categorical variables?

The simplest type of interaction is the interaction between two two-level categorical variables. Let’s say we have gender (male and female), treatment (yes or no), and a continuous response measure. If the response to treatment depends on gender, then we have an interaction.

Why do we use interaction terms in regression?

Adding interaction terms to a regression model has real benefits. It greatly expands your understanding of the relationships among the variables in the model. And you can test more specific hypotheses. But interpreting interactions in regression takes understanding of what each coefficient is telling you.

What are interaction terms in regression?

Interaction: An interaction occurs when an independent variable has a different effect on the outcome depending on the values of another independent variable.

What are interactions in regression?

In regression, an interaction effect exists when the effect of an independent variable on a dependent variable changes, depending on the value(s) of one or more other independent variables.

How do you find interaction between two variables?

Statistically, the presence of an interaction between categorical variables is generally tested using a form of analysis of variance (ANOVA). If one or more of the variables is continuous in nature, however, it would typically be tested using moderated multiple regression.

Can you have an interaction between a continuous and categorical variable?

Moral of the story: When there is a statistically significant interaction between a categorical and continuous variable, the rate of increase (or the slope) for each group within the categorical variable is different.

What is an interaction between two factors?

The interaction is the simultaneous changes in the levels of both factors. If the changes in the level of Factor A result in different changes in the value of the response variable for the different levels of Factor B, we say that there is an interaction effect between the factors.

What is interaction in regression?

Why do we need interaction terms in regression?