TABLE 13-10 You Worked as an Intern at We Always Win Car

Multiple Choice

TABLE 13-10
You worked as an intern at We Always Win Car Insurance Company last summer. You noticed that individual car insurance premiums depend very much on the age of the individual, the number of traffic tickets received by the individual, and the population density of the city in which the individual lives. You performed a regression analysis in Microsoft Excel and obtained the following information:

-An interaction term in a multiple regression model may be used when

A) the coefficient of determination is small.
B) there is a curvilinear relationship between the dependent and independent variables.
C) neither one of two independent variables contribute significantly to the regression model.
D) the relationship between X₁ and Y changes for differing values of X₂.