Question: Continuing Problem 19, revise the previous multiple regression equation to include an interaction term between the return on average equity (X1) and annual dividend rate

Continuing Problem 19, revise the previous multiple regression equation to include an interaction term between the return on average equity (X1) and annual rate (X2).
a. Estimate your revised equation using the data provided in the file P10_19.xlsx.
b. Interpret each of the estimated coefficients in your revised equation. In particular, how do you interpret the coefficient for the interaction term in the revised equation?
c. Does this revised equation fit the given data better than the original multiple regression equation? Explain why or why not.

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415-M-S-L-R (1353).xlsx

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