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A situation where the effect of an explanatory variable may depend on the value of another explanatory variable.

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Multicollinearity and Interaction Effects

The VIF value for X1 and the interaction effect X1X2 are 413.67 and 414.08 respectively. The VIF value for X2 is only 1.044729. … Furhtermore, it seems strange that the VIF values for X1 and the interaction effect are so close to each other. Help is much appreciated. Thanks in advance. …
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