A variable with a value of x₁x₂ is added to the general linear regression model to account for two predictive variables, x₁ and x₂ and the effect on the response variable. This type of effect is called __________. A) transformative B) dummy C) interaction D) predictive

Question

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The effect is called an interaction effect because it represents how the combination of two predictive variables (x₁ and x₂ in this case) uniquely affects the response variable, beyond the individual effects of x₁ and x₂ alone.

A Variable with a Value of X1x2 Is Added to the General

A Variable with a Value of X₁x₂ Is Added to the General