7.5 Take-Home Points
We use regression analysis if our dependent variable is numeric and we have at least one numeric independent (predictor) variable.
We use dummy variables to include a categorical variable as a predictor in a regression model. We need a dummy (1/0) variable for each category on the categorical variable except for one category, which represents the reference group.
We use an F test to test the null hypothesis that the regression model does not help to predict the dependent variable in the population. We use a t test to test the null hypothesis that a regression coefficient is zero in the population.
In a regression model, moderation means that there are different slopes (effects of the predictor) for different groups or contexts (moderator).
Interaction variables represent moderation in a regression model.
An interaction variable is the product of the predictor and moderator. If a categorical moderator is represented by one or more dummy variables, we need an interaction variable for each of the moderator’s dummy variables.
Statistical inference for an interaction variable is exactly the same as for “ordinary” regression predictors.
The effect of the predictor in a model with an interaction variable does not represent a main or average effect. It is a conditional effect: The effect for cases that score zero on the moderator.
To interpret moderation, describe the effects (slopes, unstandardized regression coefficients) and visualize the regression lines for different groups.
Warn the reader if the predictor scores are not nicely distributed for all groups or levels (no common support).
Don’t use the standardized regression coefficients (Beta) for interaction variables, variables included in interactions, or for dummy variables in SPSS.