Interpreting Coefficients
Remember practical vs statistical significance!
Interpreting Coefficients
Interpreting Coefficients
Interpreting regression coefficients substantively involves understanding the relationship between the independent variable and the dependent variable in terms of their real-world meaning.
As with our other tests, the relationship can be characterized by its significance, direction, and magnitude.Â
Significance: How confident are we that his relationship can be generalized to the population?
Direction: Does changes to the independent variable lead to an increase or decrease in the dependent variable.
Magnitude: To what extent do we expect Y to change, given a change in X.
Reminder: We are always predicting change in the dependent variable!