In a Multiple Linear Regression model, you discovered a significant interaction effect between two variables. How would you interpret this finding, and what implications might it have for the model?
- Add more variables
- Ignore the interaction
- No change to the model
- The effect of one variable depends on the level of the other
A significant interaction effect indicates that the effect of one variable on the response depends on the level of another variable. This means that the relationship between variables is not simply additive, and it may require the inclusion of an interaction term in the model to capture this complex relationship accurately.
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