What does a positive interaction term mean?
A positive value for the effect of the interaction term would imply that the higher the income, the greater (more positive) the effect of intentions on behavior was. Similarly, the higher the intentions, the greater (more positive) the effect of income on behavior.
Why is collinearity bad in regression?
A collinearity is a special case when two or more variables are exactly correlated. This means the regression coefficients are not uniquely determined. In turn it hurts the interpretability of the model as then the regression coefficients are not unique and have influences from other features.
When do you have a positive correlation between two variables?
Positive correlation is a relationship between two variables in which both variables move in tandem—that is, in the same direction. A positive correlation exists when one variable decreases as the other variable decreases, or one variable increases while the other increases.
What is the meaning of a positive / negative interaction?
If B3 is positive (the interactive effect is positive), then it means that the more positive X2 is, the more positive becomes the effect of X1 on Y (or alternatively, the more negative X2 is, the more negative effect of X1 on Y becomes).
When is the estimated interaction term negative in regression?
When the value of one variable increases by one unit, the slope of the relationship between the other variable and the outcome increases by the estimated interaction term (or in this case decreases, because you have a negative interaction).
Which is an example of an interaction term?
positive value for the effect of the interaction term would imply that the higher the income, the greater (more positive) the effect of intentions on behavior was. Similarly, the higher the intentions, the greater (more positive) the effect of income on behavior.