Hello,
I identified two potential interaction effects with counting analysis, both p<0.01.
I then further tested these with the Interaction Search Tool and these effects will lead to an 0.04% / 0.03% increase in percent certainty for my HB model.
I read that there is a rule of thumb that an interaction effect should increase the percent certainty by 1% or more to improve the HB model. This is not the case with my data. But as I read, it still makes sense to examine whether the addition of interaction terms improves the holdout predicability, I wonder how to do this.
The check the holdout predictability I used the Simulator and used the Utility Set from the HB estimation. Does this mean that the interaction effects are already included when simulating the choice preferences with the simulator? Or how could I include / exclude these to check if this makes a difference?
Thanks a lot for your help!
Stefanie