Twoway (scatter write socst, msym(oh) jitter(3)) /// Please note that we use c.socst to indicate that socst is a continuous variable. We will begin by running the regression model and graphing the interaction. The continuous predictor variable, socst, is a standardized test score for social studies. The categorical variable is female, a zero/one variable with females coded as one (therefore, male is the reference group). We will use an example from the hsbdemo dataset that has a statistically significant categorical by continuous interaction to illustrate one possible explanatory approach. It means that the slope of the continuous variable is different for one or more levels of the categorical variable. First off, let’s start with what a significant categorical by continuous interaction means.
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