What is the difference between multicollinearity and interaction?
Multicollinearity: Two ivs that are overly correlated (meaning they contribute basically the same information to the model). This can cause a variety of problems, including unstable results. Interaction: The continous IV has a different relationship with the continous DV for at least one of the groups. As an extreme example, Group A might have a positive relationship between X and Y, while the relationship is negative for those in Group B.
