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:

Marginal Product

The additional output gained from employing one more unit of a certain input, keeping all other inputs constant.

Labor Productivity

The measure of economic performance calculated by dividing the output by the number of labor hours used to produce it.

Technological Advance

The process of developing and applying new techniques and tools to improve efficiency, productivity, or quality in various fields.