Moderation (statistics) - Multicollinearity in Moderated Regression

Multicollinearity in Moderated Regression

For more details on this topic, see Multicollinearity.

In moderated regression analysis, a new interaction predictor is calculated. However, the new interaction term will be correlated with the two main effects terms used to calculate it. This is the problem of multicollinearity in moderated regression. Multicollinearity tends to cause coefficients to be estimated with higher standard errors and hence greater uncertainty.