(Solution Library) Consider the data from Question 1. The following model is used: y=β_0+β_1x_1+β_2x_2+β_3x_1x_2+u This model is known as
Question: Consider the data from Question 1. The following model is used:
\[y={{\beta }_{0}}+{{\beta }_{1}}{{x}_{1}}+{{\beta }_{2}}{{x}_{2}}+{{\beta }_{3}}{{x}_{1}}{{x}_{2}}+u\]This model is known as the interaction model and the term (x1 × x2) is known as the interaction term.
- Obtain the best fitted model and interpret the estimated coefficients.
- Based on the result in part (a), obtain the best fitted equation for each type of client. (i.e. you will have 3 equations, one for the manufacturing client, one for the service client, and one for the government client). Plot the three best fitted equations on the same group.
- Based on the result in part (b), explain how the interaction term affect those lines.
- If the interaction term is not in the model, how would the plot in part (c) looks like (no calculation)?
e. At 1% level of significance, is x2 a useful variable in explaining y? (Note: think carefully what should be dropped from the model if x2 is not useful.)
Deliverable: Word Document 
(Solution Library) Using the data given in Question (1). The following model
[Step-by-Step] Consider the model y=β_0+β_1x+u. With
![[See Solution] Prove using induction that (1+x)^n>1+nx,](/images/solutions/MC-solution-library-43285.jpg "[See Solution] Prove using induction that (1+x)^n>1+nx, for n =")
[See Solution] Prove using induction that (1+x)^n>1+nx, for n =
(See Solution) If f(x)=(3x+1)/(x-2), for x≠ 2, find: (5f(-1)-2f(0)+3f(5))/(6)
Solution: Prove that A∩ (B∪ C)=(A∩ B)∪ (A∩
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