An example of the interaction term betweentwo independent, continuous variables is:a. Yi = B0 + B1Xi+ B2DI + B3(Xi× Di) + ui.b. Yi = BO + B1X1¡+ B2X21+ ui.c. Yi = B0 + B1D1¡+ B2D2I+ B3 (D1i× D2i) + ui.d. Yi = B0 + B1X1¡ + B2X21+ B3(X1i× D21) + ui.e.All of the above.f. None of the above.

An interaction happens when an independent variable differently affects the resulting contingent…

Answered: An example of the interaction term…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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