The model y = β 0 + β 1 x 1 + β 2 x 2 + β 3 x 1 x 2 + ε is referred to as a:

The interaction term in this model indicates that the relationship between the predictors is not additive, meaning that the effect of one predictor on the outcome depends on the value of the other predictor. This makes it a first-order model with two predictor variables with interaction.

The model y = β 0 + β 1 x 1 + β 2 x 2 + β 3 x 1 x 2 + ε is referred to as a:

The interaction term in this model indicates that the relationship between the predictors is not additive, meaning that the effect of one predictor on the outcome depends on the value of the other predictor. This makes it a first-order model with two predictor variables with interaction.

Solved

The Model Y = β₀ + β₁x₁ + β₂x₂

Question 22

Multiple Choice

The model y = β₀ + β₁x₁ + β₂x₂ + β₃x₁x₂ + ε is referred to as a:

A) first-order model with two predictor variables with no interaction.
B) first-order model with two predictor variables with interaction.
C) second-order model with three predictor variables with no interaction.
D) second-order model with three predictor variables with interaction.

Correct Answer: