The standardized coefficient is interpreted in terms of standard deviation while unstandardized coefficient is measured in actual values.
In the context of regression analysis, standardized and unstandardized coefficients refer to different ways of expressing the relationship between variables.
- Unstandardized coefficients: These coefficients represent the change in the dependent variable for a one-unit change in the independent variable, while holding all other variables constant. They are expressed in the units of the dependent variable. Unstandardized coefficients are particularly useful when the variables in the regression model are measured in different units or scales.
- Standardized coefficients: These coefficients represent the change in the dependent variable in terms of standard deviations for a one-standard deviation change in the independent variable, while holding all other variables constant. Standardized coefficients are useful for comparing the relative importance of different predictors in the model because they have been scaled to have a mean of 0 and a standard deviation of 1. This scaling allows for a more direct comparison of the magnitude of the effects of different predictors, regardless of the units in which they are measured.
In summary:
- Unstandardized coefficients are in the original units of the variables and represent the change in the dependent variable for a one-unit change in the independent variable.
- Standardized coefficients are unitless and represent the change in the dependent variable in terms of standard deviations for a one-standard deviation change in the independent variable.