The relationship between explanatory or independent variable also having an impact on the relationship of dependent and independent variable. To address such relationship, we use interaction term in our model to explain in depth the relationship and also strengthen the explanatory power of our model.

Eg. Crop (DV) and Irrigation (IV), Rainfall; Moderating variable.

The Co-relationship of rainfall and Irrigation also has an impact on the relationship of crop and Irrigation.

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