An interaction variable of two variables, Xi and Yį is Aį × Yį. Suppose X- s a qualitative variable with 3 levels, and Y; is a qualitative variable with 4 levels. I ve represent X; and Y; each as a set of dummies, and consider all interactions of these lummies - including with powers of themselves - how many possible variables are there? A. 5 B 6

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An interaction variable of two variables, X; and Yį is Xį × Yį. Suppose Xį
is a qualitative variable with 3 levels, and Y; is a qualitative variable with 4 levels. If
we represent X; and Y; each as a set of dummies, and consider all interactions of these
dummies - including with powers of themselves - how many possible variables are there?
A. 5
B. 6
C. 11
D. 47
E. An infinite number
Transcribed Image Text:An interaction variable of two variables, X; and Yį is Xį × Yį. Suppose Xį is a qualitative variable with 3 levels, and Y; is a qualitative variable with 4 levels. If we represent X; and Y; each as a set of dummies, and consider all interactions of these dummies - including with powers of themselves - how many possible variables are there? A. 5 B. 6 C. 11 D. 47 E. An infinite number
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