What Is the Difference Between Main Effect and Interaction Effect

question 9

Multiple Choice

What is the difference between main effect and interaction effect?

• A) A main effect is when you look at differences within both IVs at the same time, whereas an interaction effect occurs if the differences in one IV change depending on the other IV.
• B) A main effect occurs if the differences in one IV change depending on the other IV, whereas an interaction effect is when you look at differences across one IV, whilst entirely ignoring the variance explained by the other IV.
• C) A main effect is when you look at differences across one IV, whilst entirely ignoring the variance explained by the other IV, whereas an interaction effect occurs if the differences in one IV change depending on the other IV.
• D) A main effect is when you look at differences across one DV, whereas an interaction effect occurs when you look at differences across two DVs.

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Definitions:

Lower-Of-Cost-Or-Market

An accounting principle that values inventory at the lesser of its historical cost or the market replacement cost, ensuring inventory is not overstated.

Inventory Valuation

The method used to calculate the cost associated with an inventory, which can impact the cost of goods sold and net income.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue, indicating the company's actual financial performance over a specific period.

Rapidly Rising Costs

A situation where the expenses associated with producing goods or services increase at a faster pace than usual, affecting profitability.