An interaction term in a multiple regression model may be used when
A) the coefficient of determination is small.
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) neither one of 2 independent variables contribute significantly to the regression model.

Question

Quizplus · Accepted Answer

An interaction term is used when the relationship between the dependent variable (Y) and one independent variable (X1) changes for different values of another independent variable (X2). This means that there is an interaction effect between X1 and X2, and the effect of X1 on Y depends on the level of X2. Therefore, option C is the correct choice. The other options do not justify the use of an interaction term.

An Interaction Term in a Multiple Regression Model May Be