An Interaction Term in a Multiple Regression Model May Be

question 219

Multiple Choice

An interaction term in a multiple regression model may be used when

• A) the coefficient of determination is small.
• B) there is a curvilinear relationship between the dependent and independent variables.
• C) the relationship between X1 and Y changes for differing values of X2.
• D) neither one of 2 independent variables contribute significantly to the regression model.

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Definitions:

Par Value

Par value is the nominal or face value of a bond, stock, or other financial instrument, as stated by the issuer.

Common Stock

Shares of ownership in a corporation that entitle the shareholder to a share of the company’s profits and a right to vote on company matters.

Consolidation Worksheet

A tool used in preparing consolidated financial statements that combines the assets, liabilities, and equity of a parent company and its subsidiaries.

Par Value

The nominal or face value of a bond, share of stock, or another financial instrument, as stated by the issuing company.