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3 questions
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answer
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Dummy Variable Trap & Interaction Term?
Suppose we create a dummy variable male (1=male, 0=female) and dummy variable female (1=female, 0=male). Does the dummy variable trap, also occur, if we include them into interaction terms:
$Y_i = β_0 ...
1
vote
1
answer
426
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Interaction between quadratic term and dummy variable
Suppose I have a linear regression:
$Y=\beta_1+\beta_2X+\beta_3X^2+\beta_4D$
where $D$ is a dummy variable that takes value 0 and 1.
If I want to examine if the effect of $X$ on $Y$ for $D=0$ and $D=1$...
1
vote
1
answer
107
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Can I use the interaction between a dummy variable and the variable it was derived from?
I am trying to make a multiple linear regression model.
I have a hypothesis that $x$ is a significant predictor of $y$ but only when $x > 0.5$ ($x$ ranges from -2 to + 2).
Is it acceptable to ...