Question: Initially we only considered multiple linear models without interactions.However, it is often useful to consider the possibility that two different predictive factors will also have

Initially we only considered multiple linear models without interactions.However, it is often useful to consider the possibility that two different predictive factors will also have a significant interaction.

Consider a model which predicts a consumer's interest in a product based on the consumer's age and the amount of advertising they have observed.Assuming both of these predictors are significant and positive in their effect, what would this mean?

(1) Do older or younger people have more interest? (1point)

(2) Does advertising help or hurt? (1point)

(3) Now suppose there is a statistically significant interaction between these two terms. What does this mean about the conclusions above? [3 points]

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Mathematics Questions!