How analyze moderating Varible

[Muhammad Aftab]

Dear All,

I have to analyze moderating variable in linear regression. How  I can do this?

Thanks

[Kristian Karlson]

Specify an interaction term. Let Y be your dependent variable and X1 and X2 two explanatory variables. Run the following regression:

Y = B0 + B1*X1 + B2*X2 + B3*X1*X2

B3 is the one you want to interpret. It says how much the effect of X1 is moderated by the levels of X2 (or, how much the effect of X2 is moderated by the levels of X1).

Kristian

[Muhammad Aftab]

Thanks Dear Karlson,

But here we are treating moderating as another independent variable…Then what need to call it moderating rather another independent variable?

[Kristian Karlson]

Yes, you can easily call that variable a moderator or moderating variable. In my equation above, X2 can be said to be the moderator of the effect of X1.
Kristian

[Muhammad Aftab]

Thanks

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