If two dummy-coded variables were used to create an interaction term for multiple regression, which of the following would be true?

Question

Quizplus · Accepted Answer

When creating an interaction term from two dummy-coded variables in multiple regression, the codes for the interaction term would be either 1 or 0. This is because the interaction term will be 1 when both original dummy variables are 1 and 0 otherwise. The original dummy-coded variables should not be omitted from the analysis, and the number of predictors in the analysis will depend on the number of other variables included in the model.

If Two Dummy-Coded Variables Were Used to Create an Interaction