Refer to Exercise 13.65.
a. Consider the following two statements:
There is multicollinearity between region of the country and whether a hospital has a medical school.
There is an interaction effect between region of the country and whether a hospital has a medical school.
What is the difference between these two statements? What evidence is needed to ascertain the truth or falsity of the statements? Is this evidence present in the ­accompanying output? If it is, do you think the statements are true or false?
b. Construct a model that allows for the possibility of an interaction effect between ­region of the country and medical school affiliation. For this model, what is the ­difference in intercept between a hospital in the northeast affiliated with a medical school and a hospital in the west not affiliated with one?
In exercise

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