At the 0.05 level of significance, is there evidence that the interaction term m

Question

At the 0.05 level of significance, is there evidence that the interaction term makes a significant contribution to the model?

What is the p-value for this test?

round to 3 decimals

Which regression model is more appropriate, the model with the interaction term used in (a) or the original model?

A.The new model is more appropriate because the interaction issignificant.Your answer is not correct.

B.The old model is more appropriate because the interaction is significant.

C.The old model is more appropriate because the interaction is not significant.This is the correct answer.

D.The new model is more appropriate because the interaction is not significant.

E.The new model is more appropriate because the coefficient of the interaction term is not equal to 0.

Cost   Sales   Orders
63.28   897   5927
71.42   451   4982
82.05   508   5311
64.72   399   4271
66.39   457   4089
83.69   516   5230
57.43   354   2927
77.73   496   4587
61.17   439   3451
87.91   548   3750

Explanation / Answer

From excel output,

The p - value of this test = 0.010

Since this p - value is less than 0.05, it means that the interaction term is significant.

Option A is correct.

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