interactionsadding
interactionsadding is a term used to describe the process of incorporating interaction effects between predictor variables into a statistical, econometric, or machine learning model. An interaction term represents a multiplicative effect between two or more predictors, capturing situations where the effect of one variable depends on the level of another.
Practitioners add interaction terms when theory or prior evidence suggests a combined effect, or when exploratory
Adding interactions raises dimensionality and the risk of overfitting; regularization, cross-validation, and pre-specification based on domain
In practice, interactionsadding is common in fields such as economics, psychology, biology, and marketing, where combined
Computationally, most statistical software supports interaction terms. In R, models use an explicit interaction operator or