Question

A multiple regression model includes the term (X1)(X2). The term implies that _______.

a. the independent variables are correlated
b. there is only one independent variable in the regression model
c. the effect of X1 on the dependent variable is independent of the value of X2
d. the effect of X1 on the dependent variable may depend on the value of X2

Answer 1

c

Explanation:

In a multiple regression model X1 and X2 are two independent variables and the assumption is made that the effect of of X1 and X2 on dependent variables is independent of each other.For example let y be the student grade and x1 is the study hour and x2 be the IQ level of student so the multiple regression model for this scenario will be

Y=b0+b1x1+b2x2+e

Hence we can see that effect of study hour and IQ level on the student grade and the effect of study hour on the student grade is independent of the value of IQ level.