A regression of Y using four independent variables X1,X2,X3,X4 could also have up to four nonlinear terms (X2)and six simple interaction terms (XjXk)if you have enough observations to justify them.

Question

Quizplus · Accepted Answer

With four independent variables, there can be up to four nonlinear terms and up to six simple interaction terms. However, whether or not there are enough observations to justify including these terms should be determined through statistical analysis and testing.

A Regression of Y Using Four Independent Variables X1,X2,X3,X4 Could