interpretation of interaction effect in regression

From: Ad de Jong (a.d.jong_at_tm.tue.nl)
Date: 02/23/05


Date: Wed, 23 Feb 2005 13:36:29 +0000 (UTC)

Hi

Consider the following regression equations:

(1) Y= â0 + â1X + â2Z + â3XZ+ e.

(2) Y= â0 + â1X + â2X(quad) + â3Z + â4XZ+ e.

Equation 1 includes the linear terms of variables X and Z, and an
interaction term of X and Z. In Equation 2 the quadratic term
X(quad)is added. Does the inclusion of this quadratic term change the
interpretation of the interaction effect (XZ)?

I very appreciate your comments

Ad