Mean centering helps alleviate "micro" but not "macro" multicollinearity

Dawn Iacobucci1, Matthew J Schneider2, Deidre L Popovich3

  • 1Vanderbilt University, 401 21st Avenue South, Nashville, TN, 37203, USA. Dawn.Iacobucci@owen.vanderbilt.edu.

Summary

Mean centering variables before calculating interaction terms in multiple regression is clarified. This practice can be useful, but its effect on multicollinearity depends on the definition used.

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