7.2 Method to Calculate Net Interaction Effects

Three step process:

  1. Compute additive contribution of each variable (i.e., deviation from global mean)
  2. Calculate net effect of interaction for each pairwise combination:
    • Determine the contribution for each pair of explanatory variables, PC (paired contribution)
    • Compute additive contribution for single variable 1, SC1 (single contribution 1)
    • Calculate additive contribution for single variable 2, SC2 (single contribution 2)
    • Putting together, net interaction effect = PC - SC1 - SC2
  3. Rank contributions for both individual variables and pairwise interactions using the absolute value of the contribution effects. Use ranking for ordering variable importance calculations.