A variable such as z, whose value is z = x₁x₂, is added to a general linear model in order to account for potential effects of two variables x₁ and x₂ acting together. This type of effect is A) impossible to occur. B) called interaction. C) called multicollinearity effect. D) one of the transformation effects.

Question

Quizplus · Accepted Answer

This type of effect, where two variables act together to have an impact on the dependent variable, is called interaction. Multicollinearity refers to a high correlation between two or more predictor variables, and transformation effects refer to the use of mathematical transformations (e.g. logarithmic, exponential) to improve model fit. Option A is incorrect as interaction effects are possible and common in statistical modeling.

A Variable Such as Z, Whose Value Is Z =