Dear all,
Suppose, I had a simple model: Y = Ao + A1*X1 + A2*Z + u, where A2 is
a categorical variable e.g., ethnicity. If I wanted to see how
different ethnic groups may have different effect on Y, I can use an
interaction term: X1*Z or I can run seperate equations fro each
ethnicity. Can you tell me the advantage of each method?
Many thanks!
Quang
--
"My father gave me the greatest gift anyone could give another person,
he believed in me." - Jim Valvano
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