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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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Dummy variables for people and time
My aim is to write a simple linear regression model of Y versus these categories and their interaction effects (and an additional explanatory variable Z). … otherwise,
E2=1 if event E2 occurred in a year for a person, =0 otherwise,
notE=1 if event E1 did not occur and event E2 did not occur in a year for a person, 0 otherwise
There would be 9 possible interaction …