For the Model Y = β₀ + β₁x + β₂xd

question 30

Multiple Choice

For the model y = β₀ + β₁x + β₂xd + ε, which of the following are the hypotheses for testing the individual significance of the interaction variable xd?

• A) H₀: xd = 0, H_A: xd ≠ 0
• B) H₀: b₂ = 0, H_A: b₂ ≠ 0
• C) H₀: β₂ = 0, H_A: β₂ ≠ 0
• D) H₀: β₂ ≠ 0, H_A: β₂ = 0

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Definitions:

Deviations Squared

The squares of the differences between individual data points and the mean of those points, used in calculating variance.

Mean

A statistical measure that demonstrates the central or typical value in a set of numbers, calculated by dividing the sum of all values by the number of values.

Standard Deviation

A measure of the dispersion or spread of data points in a dataset relative to its mean.

Sum Squared Deviations

The sum of the squares of each data point's deviation from the mean, a measure used in statistics to quantify variability within a data set.