The model $y = \beta _ { 0 } + \beta _ { 1 } x _ { 1 } + \beta _ { 2 } x _ { 2 } + \beta _ { 3 } x _ { 1 } x _ { 2 }$ + $\varepsilon$ is referred to as a:
A) first-order model with two predictor variables with no interaction.
B) first-order model with two predictor variables with interaction.
C) second-order model with three predictor variables with no interaction.
D) second-order model with three predictor variables with interaction.

Question

Quizplus · Accepted Answer

The model includes an interaction term $x_1x_2$, indicating that the relationship between the response variable $y$ and the predictor variables $x_1$ and $x_2$ is not linear.

The Model y=β0+β1x1+β2x2+β3x1x2y = \beta _ { 0 } + \beta _ { 1 } x _ { 1 } + \beta _ { 2 } x _ { 2 } + \beta _ { 3 } x _ { 1 } x _ { 2 }y=β0​+β1​x1​+β2​x2​+β3​x1​x2​

The Model $y = \beta _ { 0 } + \beta _ { 1 } x _ { 1 } + \beta _ { 2 } x _ { 2 } + \beta _ { 3 } x _ { 1 } x _ { 2 }$