AI engineering glossary · Statistics inference
What is interaction term?
Interaction term: A term in a model that lets the effect of one predictor depend on the value of another, usually built by multiplying the two. Without it the model assumes each predictor works independently.
Interaction term: an example
In sales = b0 + b1 * ad_spend + b2 * festival + b3 * ad_spend * festival, b3 shows how much ads work better during festivals.
Related terms
More Statistics inference terms
- Jackknife
- Kolmogorov-Smirnov test
- Likelihood function
- Likelihood ratio test
- Log-likelihood
- Mann-Whitney U test
- Margin of error
- Maximum a posteriori estimation
Where you learn it
Interaction term is part of the AI Engineering Program, which teaches it with notes, a hands-on lab and an exam. The first lesson is free.