In the model $Y _ { i } = \beta _ { 0 } + \beta _ { 1 } X _ { 1 } + \beta _ { 2 } X _ { 2 } + \beta _ { 3 } \left( X _ { 1 } \times X _ { 2 } \right) + u _ { i }$ the expected effect $\frac { \Delta Y } { \Delta X _ { 1 } }$ is
A) $\beta _ { 1 } + \beta _ { 3 } X _ { 2 }$
B) $\beta _ { 1 } .$
C) $\beta _ { 1 } + \beta _ { 3 }$
D) $\beta _ { 1 } + \beta _ { 3 } X _ { 1 }$

Question

Quizplus · Accepted Answer

The expected effect of $X_1$ on $Y$ is $\beta_1 + \beta_3 X_2$.

In the Model Yi=β0+β1X1+β2X2+β3(X1×X2)+uiY _ { i } = \beta _ { 0 } + \beta _ { 1 } X _ { 1 } + \beta _ { 2 } X _ { 2 } + \beta _ { 3 } \left( X _ { 1 } \times X _ { 2 } \right) + u _ { i }Yi​=β0​+β1​X1​+β2​X2​+β3​(X1​×X2​)+ui​

In the Model $Y _ { i } = \beta _ { 0 } + \beta _ { 1 } X _ { 1 } + \beta _ { 2 } X _ { 2 } + \beta _ { 3 } \left( X _ { 1 } \times X _ { 2 } \right) + u _ { i }$