The model y = β₀ + β₁x₁ + β₂x₂ + β₃x₁x₂ + ε is referred to as a second-order model with two predictor variables with interaction.

Question

Quizplus · Accepted Answer

The model includes terms for two predictor variables, their squares (indicating it's a second-order model), and their interaction, but it also includes a three-way interaction term (x₁x₂), which goes beyond a simple second-order model with two predictors and interaction.

The Model Y = β0 + β1x1 + β2x2

The Model Y = β₀ + β₁x₁ + β₂x₂