Consider the following model:

a. Provide an interpretation of the coefficient of x1.
b. Is the interpretation provided in part a true regardless of the value of x2? Explain.
c. Now consider the model = 5 + 3 x1 + 5x2 + 4x1 x2. Let x2 = 1.Give an interpretation of the coefficient of x1 when x2 = 1.
d. Repeat part c when x2 = 2. Is the interpretation provided in part a true regardless of the value of x2? Explain.
e. Considering your answers to parts c and d, what type of regression components has conditional interpretations?

Transcribed Image Text:

y 5 + 3x1 + 5x2