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Suppose I have a Ordinary Least Squares model of this form:

$Y = \beta_0 + \beta_1 X_1 + \beta_2 X_2 + \beta_3 X_1*X_2$

What would be an interpretation for the coefficient $\beta_3$? (Suppose that $X_1$ & $X_2$ are not binary)

For example:

$Y$ = price of house
$X_1$ = squared meters of the property
$X_2$ = number of bathrooms

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  • $\begingroup$ Please search this site for interaction. $\endgroup$
    – whuber
    Nov 30, 2021 at 17:28

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