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An Example of the Interaction Term Between Two Independent, Continuous

question 51

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An example of the interaction term between two independent, continuous variables is a. Yi=β0+β1Xi+β2Di+β3(Xi×Di)+ui\quad Y _ { i } = \beta _ { 0 } + \beta _ { 1 } X _ { i } + \beta _ { 2 } D _ { i } + \beta _ { 3 } \left( X _ { i } \times D _ { i } \right) + u _ { i } .
b. Yi=β0+β1X1i+β2X2i+uiY _ { i } = \beta _ { 0 } + \beta _ { 1 } X _ { 1 i } + \beta _ { 2 } X _ { 2 i } + u _ { i } .
c. Yi=β0+β1D1i+β2D2i+β3(D1i×D2i)+uiY _ { i } = \beta _ { 0 } + \beta _ { 1 } D _ { 1 i } + \beta _ { 2 } D _ { 2 i } + \beta _ { 3 } \left( D _ { 1 i } \times D _ { 2 i } \right) + u _ { i } .
d. Yi=β0+β1X1i+β2X2i+β3(X1i×X2i)+uiY _ { i } = \beta _ { 0 } + \beta _ { 1 } X _ { 1 i } + \beta _ { 2 } X _ { 2 i } + \beta _ { 3 } \left( X _ { 1 i } \times X _ { 2 i } \right) + u _ { i } .


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