An Interaction Term in a Multiple Regression Model May Be

question 138

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:

Applied Factory Overhead

Indirect costs related to manufacturing, allocated to goods based on a predetermined rate.

Direct Labor

The wages or expenses directly associated with the manufacturing of products or delivery of services.

Continuous Process

A production process that is non-stop and operates continuously over long periods.

Applied Factory Overhead

The portion of overhead costs that are allocated to produced goods based on a predetermined rate or method.