Let Xi be a continuous variable, and let Di be a binary variable. An example of an interaction term between two independent, continuous variables is:   a. Yi = β0 + β1Xi + β2Di + β3(Xi × Di) + ui.    b. Yi = β0 + β1X1i + β2X2i + ui.    c. Yi = β0 + β1D1i + β2D2i + β3 (D1i × D2i) + ui.    d. Yi = β0 + β1X1i + β2X2i + β3(X1i × D2i) + ui.    e. All of the above.    f. None of the above.

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Let Xi be a continuous variable, and let Di be a binary variable. An example of an interaction term between two independent, continuous variables is:

 

a.

Yi = β0 + β1Xi + β2Di + β3(Xi × Di) + ui.

 

 b.

Yi = β0 + β1X1i + β2X2i + ui.

 

 c.

Yi = β0 + β1D1i + β2D2i + β3 (D1i × D2i) + ui.

 

 d.

Yi = β0 + β1X1i + β2X2i + β3(X1i × D2i) + ui.

 

 e.

All of the above.

 

 f.

None of the above.

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