An example of the interaction term between two independent, continuous variables is
A) Yi = ?0 + ?1Xi + ?2Di + ?3(Xi × Di) + ui.
B) Yi = ?0 + ?1X1i + ?2X2i + ui.
C) Yi = ?0 + ?1D1i + ?2D2i + ?3 (D1i × D2i) + ui.
D) Yi = ?0 + ?1X1i + ?2X2i + ?3(X1i × X2i) + ui.
Answer: D
Economics
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