... two explanatory variables in a regression model is known as an interaction. For male managers, the interaction is the same as Years. For female managers, the interaction Group × Years is 0. Table 25.4 shows four examples from the data table.

What Do You Think?

  1. Consider the context of the previous “What Do You Think” that concerns the effects of couponing supermarket customers.

    1. How would you define a dummy variable called Coupon to represent those who use store coupons at checkout?5

    2. What does the average of the dummy variable Coupon tell you?6

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