From the course: Advanced and Specialized Statistics with Stata

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Solution: Interaction effects

Solution: Interaction effects - Stata Tutorial

From the course: Advanced and Specialized Statistics with Stata

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Solution: Interaction effects

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(upbeat pop music) - [Instructor] Let's have a look at the solutions to our Interaction Effect challenge using the nlsw data. There was only one challenge, to create and interpret a complicated regression model. The challenge was to estimate the probability of being a union member using the variables wage, country, married and grade. So, before we do anything else, let's build a simple model and let's take a look at the dependent variable, union membership. Let's tabulate it. Tab union. We see that 25% of our sample are union members. And 75% of our sample are not union members. To estimate this kind of model, we're going to use a logit model. So, let's go ahead and construct a basic logit model. Logit union is a function of the continuous variable, wage. The categorical variable, country. The categorical variable, married. And the continuous variable, grade. The next step is to interact wage, country and married…

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