Interaction Effects
In statistical modeling, interaction effects occur when the effect of one variable on the outcome depends on the level of another variable.
Implications
In statistics and research, the phenomenon where the effect of one independent variable on a dependent variable changes depending on the level of another independent variable, often analyzed in experimental designs and multivariate analysis.
Example
Example: A marketing study finds interaction effects between price and advertising intensity, showing that the impact of a price discount on sales is stronger when advertising is also increased, leading to more effective campaign strategies.
Related Terms
Different from main effects, which consider the independent impact of each variable, interaction effects focus on how variables influence each other�s impact on the outcome.
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