Which of the Following Regression Models Does Not Include an Interaction

question 82

Multiple Choice

Which of the following regression models does not include an interaction variable?

• A) y = β₀ + β₁x + β₂xd + ε
• B) y = β₀ + β₁x + β₂x² + ε
• C) y = β₀ + β₁d + β₂xd + ε
• D) y = β₀ + β₁x + β₂d + β₃xd + ε

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Definitions:

Contribution Margin

The amount of revenue from sales that exceeds variable costs, indicating the contribution of sales to fixed costs and profit.