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  • Interaction Terms - Significance

    Hello!

    In my regression, my dependent variable is University (Decision children make on whether they want to go to University). Independent variable is Private Schooling (Categorical for Private/ State schooling). In the sample there are a small proportion of people in Private compared to State Schooling, which perhaps is causing insignificance in the Private Schooling Variable of 0.7.

    So I decided to use Interaction Terms. I interacted Private Schooling and Household Income as well as for Ethnicity (White). This resulted in a significant result for Private Schooling, but the coefficient doesn't seem correct (-390) and the Marginal effect being (-14). Is this correct and how do you think I should interpret these results?

    Any help would be much appreciated!




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