##### Statistics Question -Interaction Term

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True/False:  The regression model Y= b0 + b1*X1 + b2*X2 + b3*X1*X2 + e has an interaction term.

Sep 29th, 2015

The regression model Y= b0 + b1*X1 + b2*X2 + b3*X1*X2 + e has an interaction term. - FALSE

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Sep 29th, 2015

Can you explain why this is false?

Sep 29th, 2015

The presence of a significant interaction indicates that the effect of one predictor variable on the response variable is different at different values of the other predictor variable. It is tested by adding a term to the model in which the two predictor variables are multiplied. but here in the above equation we see that it is a basic linear regression model equation without any interaction term.

Sep 29th, 2015

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Sep 29th, 2015
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Sep 29th, 2015
Dec 10th, 2016
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