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Including quadratic terms in regression analysis

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(a) Explain why it might be useful to include a quadratic term in a regression. (b) Explain why it might be useful to include an interaction term between two predictors in a regression. (c) Name a drawback to including quadratic or interaction terms in a regression.

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The solution explains why it is useful to include quadratic terms in a regression analysis. The drawbacks to including quadratic or interaction terms are also analyzed.

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(a) Sometimes, the given data points can be better connected by performing a quadratic regression than a linear regression. Specially, if it is already known that the variables in the regression model generally come from an application which follows quadratic behaviour, performing a linear ...

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