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st: Basic regression interaction term question
This is a pretty basic question, but I haven't been able to find any
examples in the lit with this particular configuration ...
Suppose you regress Y on A and B, and you expect an interaction between
A and B.
In the regression Y = A + B, the coefficient for B is not significant,
but you have reason to think that it will be significant once you
introduce the interaction term.
However, in the regression Y = A + B + AB, the coefficient for B remains
non-significant even though the coefficient for AB is significant. Yet,
"test A B AB" is significant.
Is it reasonable to treat this as a significant interaction?
What if AB is not significant either but "test A B AB" is still significant?
Michael
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