A Comprehensive Guide to Interaction Terms in Linear Regression

Originally published at: https://developer.nvidia.com/blog/a-comprehensive-guide-to-interaction-terms-in-linear-regression/

Linear regression is a powerful statistical tool used to model the relationship between a dependent variable and one or more independent variables (features). An important, and often forgotten, concept in regression analysis is that of interaction terms. In short, interaction terms enable you to examine whether the relationship between the target and the independent variable…

Have you ever utilized interaction terms in linear models? If you have, was it mostly for econometric models or have you also applied them in business use cases?