A new clothing retail chain called Stitch in Time is interested in understanding the impact of store location (urban ,suburban, rural) and promotional strategy (discounts ,loyalty programs) on monthly sales.
Which of the following statements about interaction effects in this scenario is correct?
1. Interaction effects occur when the main effects of both
2. factors are statistically significant.
3. Interaction effects occur when one factor's effect depends on the other factor's level
4. Interaction effects occur when the effect of one factor does not depend on the level of the other factor.
Interaction effects are only relevant when there is a significant main effect for one of the factors.
