A multiple regression model includes the term (X₁)(X₂). The term implies that: A) the independent variables are correlated. B) there is only one independent variable in the regression model. C) the effect of X₁ on the dependent variable is independent of the value of X₂. D) the effect of X₁ on the dependent variable depends on the value of X₂.

Question

Quizplus · Accepted Answer

The term (X₁)(X₂) suggests an interaction effect between the variables X₁ and X₂, where the effect of X₁ on the dependent variable depends on the value of X₂. Therefore, the correct choice is D. Choices A, B, and C are not correct because they do not reflect the nature of the interaction term.

A Multiple Regression Model Includes the Term (X1)(X2)

A Multiple Regression Model Includes the Term (X₁)(X₂)