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Including an Interaction Term Between Two Independent Variables X1 and X2X _ { 1 } \text { and } X _ { 2 } \text {, }

Question 20

Multiple Choice

Including an interaction term between two independent variables, X1 and X2X _ { 1 } \text { and } X _ { 2 } \text {, } allows for the following, except that:


A) the interaction term lets the effect on Y of a change in X1X _ { 1 } depend on the value of X2X _ { 2 }
B) the interaction term coefficient is the effect of a unit increase in X1X _ { 1 } and X2X _ { 2 } above and beyond the sum of the individual effects of a unit increase in the two variables alone.
C) the interaction term coefficient is the effect of a unit increase in (X1×X2) \sqrt { \left( X _ { 1 } \times X _ { 2 } \right) }
D) the interaction term lets the effect on Y of a change in X2X _ { 2 } depend on the value of X1X _ { 1 }

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