An Interaction Term in a Multiple Regression Model May Be

question 267

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)neither one of 2 independent variables contribute significantly to the regression model.
• D)the relationship between X1 and Y changes for differing values of X2.

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Definitions:

Declared Bankrupt

The legal status of an individual or entity that cannot repay the debts they owe to creditors, formally recognized by a court.

Capacity To Contract

The legal ability of a person to enter into a binding contract, typically requiring that the individual is of a certain age and sound mind.

Necessaries

Goods or services that are essential for someone’s maintenance and welfare according to their status in life and their requirements at the time of contract.

Credit

The granting of money or something of value with the expectation of repayment, or the reputation for solvency and reliability that allows an entity to borrow.