A low correlation coefficient implies that
A) the line always has a flat slope
B) in the scatterplot, the points fall quite far away from the line
C) the two variables are unrelated
D) you should use a tighter scale of the vertical and horizontal axis to bring the observations closer to the line
Question 2
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.
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