Consider the regression model Yi = b0 + b1X1i + b2X2i + b3(X
Question and Solution
Consider the regression model Yi = b0 + b1X1i + b2X2i + b3(X1i * X2i ) + ui. Use Key Concept 8.1 to show: a. ?Y>?X1 = b1
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Consider the regression model Yi = b0 + b1X1i + b2X2i + b3(X1i * X2i ) + ui. Use Key Concept 8.1 to show: a. ?Y>?X1 = b1 + b3X2 (effect of change in X1, holding X2 constant). b. ?Y>?X2 = b2 + b3X1 (effect of change in X2, holding X1 constant). c. If X1 changes by ?X1 and X2 changes by ?X2, then ?Y = (b1 + b3X2)?X1 + (b2 + b3X1)?X2 + b3?X1?X2.
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