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:

Closing Entries

Closing entries are journal entries made at the end of an accounting period to transfer temporary accounts to permanent accounts.

Rendering Services

The act of providing professional services or duties to a client or customer.

Purchases Journal

A ledger used in accounting to record all purchases of goods and services on credit.

Accounts Payable

Short-term liabilities or money owed by a company to its creditors or suppliers for goods and services that have been delivered but not yet paid for.