I have a short question regarding interaction variables:
In a logit regression with 2 independent dichotomous variables (A and B), both variables are significant. By including the interaction (AxB) in the regression, B becomes insignificant. Is the high (0.6) and significant correlation between (AxB) and B the reason for this? And in conclusion, has B a significant influence on the dependent variable or not?
By including demographics and their interaction variables, all initial significant variables become insignificant (enter method). Is it smarter to simply use the stepwise forward method? By doing so, the initial significant variables remain significant. However, all new added varialbes are not included in the model.
Thanks a lot in advance for your help.