Question

Which of the following statement is not true?

1.Interaction terms are always significant
2.We can create an interaction by multiplying two of our predictor variables and adding the result to our model
3.Adding an interaction term to a model can improve prediction accuracy
4.If we add an interaction term, we should also add its components to the model to determine whether they are significant contributors separately and together

Answer 1

Interaction terms are not always significant. Adding an interaction term can improve prediction accuracy. When adding an interaction term, its components should also be included in the model.

Step-by-step explanation:

The statement that is not true is: 1. Interaction terms are always significant. Interaction terms can be significant or not significant, depending on the specific data and context of the analysis.

Here are explanations for the other statements:

1. 2. We can create an interaction by multiplying two of our predictor variables and adding the result to our model. This statement is true. An interaction term is created by multiplying two predictor variables and adding it to the model to allow for the possibility that the relationship between the dependent variable and one predictor variable depends on the level of another predictor variable.
2. 3. Adding an interaction term to a model can improve prediction accuracy. This statement is true. Including interaction terms can help capture more complex relationships in the data and improve the model's ability to make accurate predictions.
3. 4. If we add an interaction term, we should also add its components to the model to determine whether they are significant contributors separately and together. This statement is true. When adding an interaction term, it is important to also include its components (main effects) in the model to assess their individual contributions as well as their joint contribution with the interaction.