From the course: Advanced and Specialized Statistics with Stata

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Categorical by linear interactions

Categorical by linear interactions - Stata Tutorial

From the course: Advanced and Specialized Statistics with Stata

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Categorical by linear interactions

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- - [Instructor] In this final session, we're going to bring all the previous sessions together and explore how to interact continuous and categorical variables together to form extremely complicated specifications that can still be meaningfully interpreted. Stata's advantage compared to other statistical packages, is that it allows you to build models that may at first seem far too complex to interpret, but by carefully using the margins and marginsplot commands, we can build models that may look far too complex, but still have a simple interpretation. Here is an example of what I mean. Don't even try to read the output from this regression. There's too much going on, and even someone with a lot of experience would need a good 10 minutes to figure out what these coefficients actually refer to. Thankfully, the pictorial interpretation is much easier. This graph shows that the relationship between educational grade and…

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