We Should Include an Interaction Variable in a Regression Model

question 2

True/False

We should include an interaction variable in a regression model if we believe that the effect of one explanatory variable on the response variable Y depends on the value of another explanatory variable .

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Definitions:

Standard Deviation

An indicator of the spread or diversity within a dataset, showing to what extent the individual numbers deviate from the dataset's average.

Independent

Referring to variables in a statistical model that are not influenced by other variables in the model, suggesting no association between them.

Random Variable

A variable capturing the numerical consequences of randomness in events.

Weekly Income

The total amount of money earned or received as compensation over the course of a week.