Why Is Centring Variables Important in Moderation Analysis

question 13

Multiple Choice

Why is centring variables important in moderation analysis?

• A) It ensures that all effects are removed.
• B) It allows errors to be detected
• C) It allows higher order effects to be interpretable
• D) It allows lower-order effects to be interpretable

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Definitions:

Normal Good

A good for which demand increases as consumer income rises.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, inversely related to income changes.

Law Of Demand

An economic principle stating that, all else being equal, an increase in the price of a good or service will lead to a decrease in the quantity demanded, and vice versa.

Quantity Demanded

The total amount of a product that consumers are willing and able to purchase at a certain price level within a specified time period.