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Thread: Help with interaction terms

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    Help with interaction terms




    Hi, I have two categorical variables (race and field of study) as a part of my model to predict degree completion. In addition to the original model, I wanted to interact race with field of study. However, I was a bit confused about what should be included in the equation because both variables are categorical variables.

    I have White, Asian, Black, Hispanic as the race dummies and hardpure, hardapplied, softpure, and softapplied as my field of study dummies. If I want to interact race and field of study, I will have

    White*hardpure
    White*hardapplied
    White*softpure
    White*softapplied

    Asian*hardpure
    Asian*hardapplied
    Asian*softpure
    Asian*softapplied

    Black*hardpure
    Black*hardapplied
    Black*softpure
    Black*softapplied

    Hispanic*hardpure
    Hispanic*hardapplied
    Hispanic*softpure
    Hispanic*softapplied

    Which one should be my omitted variable?

  2. #2
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    Re: Help with interaction terms


    Do you mean which should be your reference value to compare the others against? You program will likely have a rule if not specified, say Asian*hardapplied since in is lowest in ascending aphabetical order.
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