Including an Interaction Term Between Two Independent Variables, X₁ and X₂

question 1

Multiple Choice

Including an interaction term between two independent variables, X₁ and X₂, allows for the following except:

• A)the interaction term lets the effect on Y of a change in X₁ depend on the value of X₂.
• B)the interaction term coefficient is the effect of a unit increase in X₁ and X₂ above and beyond the sum of the individual effects of a unit increase in the two variables alone.
• C)the interaction term coefficient is the effect of a unit increase in \(\sqrt { \left( X _ { 1 } \times X _ { 2 } \right) }\)
• D)the interaction term lets the effect on Y of a change in X₂ depend on the value of X₁.

---

Definitions:

Adjusting Entry

Journal entries made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Accounts Receivable

The amount customers are required to pay a business for goods or services already received but not yet settled.

NSF

An abbreviation for "Non-Sufficient Funds," indicating that a cheque cannot be honored because the account does not have enough money.

Cash Management

The strategy and processes employed by a company to manage its cash flow effectively, ensuring liquidity and minimizing risk.