In the interaction model y = β₀+ β₁X₁+ β₂X₂+ β₃X₁X₂+ ε,we would first test the significance of _____. A)β₃ B)β₂ C)β₁ D)β₀ E)ε

Question

Quizplus · Accepted Answer

The null hypothesis for testing the significance of β₃ is that β₃ = 0. If the null hypothesis is rejected, then we can conclude that the interaction between X₁ and X₂ is significant.

In the Interaction Model Y = β0+ β1X1+ β2X2+ β3X1X2

In the Interaction Model Y = β₀+ β₁X₁+ β₂X₂+ β₃X₁X₂