In the model y = β₀ + β₁x + β₂d + β₃xd + ε,when d changes from 0 to 1 how does the intercept of the corresponding lines change? A)from b₀ to b₀ + b₁ B)from b₀ to b₀ + b₂ C)from b₀ to b₀ + b₃ D)from b₀ to b₀ + b₁ + b₂

Question

Quizplus · Accepted Answer

In the given model, when d changes from 0 to 1, the coefficient of β₂d becomes active, and this variable represents the interaction effect of d and x in the model. Hence, the intercept shifts from b₀ to b₀ + b₂. Therefore, the correct answer is option B.

In the Model Y = β0 + β1x + β2d

In the Model Y = β₀ + β₁x + β₂d