A business stakeholder asks you to explain the interaction effect found in a Multiple Linear Regression model built for sales prediction. How would you explain this in non-technical terms?

  • Explain that one variable's effect depends on another variable
  • Ignore the question
  • Provide raw data
  • Use technical jargon
You could explain the interaction effect by stating that the effect of one variable on sales depends on the level of another variable. For example, the effect of advertising on sales might depend on the season, and the interaction term captures this dependency in the model.
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