Consider the regression model Houseprice = Bi + PSize + B Bedrooms +B&Size Bedr Suppose the estimated coefficients are all positive. What does the interactive term capture? If Bedrooms has a larger value, Size also tends to be larger. None of the presented possible answers are correct. O Size and Bedrooms both have a positive influence on House price. O If Bedrooms has a larger value, the impact of an increase in Size on the predicted value of House price is greater. O If Bedrooms has a larger value, the predicted value of House price is higher, regardless of the value of Size.

Big Ideas Math A Bridge To Success Algebra 1: Student Edition 2015
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Chapter4: Writing Linear Equations
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Consider the regression model
Houseprice = Bi + BSize + B Bedrooms + BaSize Bedr
Suppose the estimated coefficients are all positive. What does
the interactive term capture?
If Bedrooms has a larger value, Size also tends to be larger.
O None of the presented possible answers are correct.
O Size and Bedrooms both have a positive influence on House price.
O If Bedrooms has a larger value, the impact of an increase in Size on
the predicted value of House price
is greater.
O If Bedrooms has a larger value, the predicted value of House price is
higher, regardless of the value of Size.
Transcribed Image Text:Consider the regression model Houseprice = Bi + BSize + B Bedrooms + BaSize Bedr Suppose the estimated coefficients are all positive. What does the interactive term capture? If Bedrooms has a larger value, Size also tends to be larger. O None of the presented possible answers are correct. O Size and Bedrooms both have a positive influence on House price. O If Bedrooms has a larger value, the impact of an increase in Size on the predicted value of House price is greater. O If Bedrooms has a larger value, the predicted value of House price is higher, regardless of the value of Size.
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