Chapter 55. Modeling Nonlinearities and Interactions
Questions answered in this chapter:
What does it mean when we say that an independent variable has a nonlinear effect on a dependent variable?
What does it mean when we say that the effects of two independent variables on a dependent variable interact?
How can I test for the presence of nonlinearity and interaction in a regression?
Answers to This Chapterâs Questions
What does it mean when we say that an independent variable has a nonlinear effect on a dependent variable?
An independent variable often influences a dependent variable through a nonlinear relationship. For example, if you try to predict product sales using an equation such as Sales=500â10*Price, price influences sales linearly. ...
Get Microsoft® Excel® 2010: Data Analysis and Business Modeling now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
