An interaction term in a multiple regression model may be used when A) neither one of two independent variables contribute significantly to the regression model. B) there is a curvilinear relationship between the dependent and independent variables. C) the relationship between X₁ and Y changes for differing values of X₂. D) the coefficient of determination is small.

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An interaction term is used when the relationship between the two independent variables changes for differing values of the predictor variable. This is represented by the X₁ and X₂ terms in the equation. Options A, B, and D are not relevant to the use of an interaction term.

An Interaction Term in a Multiple Regression Model May Be