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) neither one of 2 independent variables contribute significantly to the regression model.
D) the relationship between X₁ and Y changes for differing values of X₂.

Question

Quizplus · Accepted Answer

An interaction term is used when the relationship between one independent variable (X₁) and the dependent variable (Y) changes for different values of another independent variable (X₂). This suggests that the effect of X₁ on Y depends on the level of X₂. None of the other options describe situations where an interaction term is necessary.

An Interaction Term in a Multiple Regression Model May Be