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Provide an example where a two-way ANOVA would be appropriate. Then, describe the hypothesized interaction effect...

Provide an example where a two-way ANOVA would be appropriate. Then, describe the hypothesized interaction effect (how does the effect of IV #1 depend on the effect of IV #2?).

Math   Statistics-And-Probability   
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Say we two independent variables which are Gender and Education level (School, College and University). There is one dependent variable which is Salary. So we run a two-way ANOVA to test whether either of the two independent variables are significant and there is a difference in Salary across the levels of the independent variables. Now, if the interaction effect between Gender and Education level is significant, the impact of Gender on the Salary will also depend on the level of the education. So, it means that the salary of Males will also differ between their education levels.

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