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Obsidian | Level 7

Hello experts,

 

I have one question regarding interaction term. Let's say I have two dichotomous variables A and B. What is the difference between using an interaction term A*B in the model vs. creating a grouping variable that has four levels (A+B+; A+B-; A-B+; A-B-)?

 

Thanks!

2 REPLIES 2
Ksharp
Super User

No difference .Both have the same design matrix.

Maybe @StatDave  @SteveDenham @lvm  @Rick_SAS  know something .

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