Hi Joe,
You are correct in assuming this variable represents a quadratic term in your model.
When we build a model we are attempting to explain how certain factors impact a response in our data. A Main Effects model can help here but it is oftentimes beneficial to include additional quadratic or interaction effects to further explain variation we see in our response data.
The prediction profiler is an excellent interactive tool for making sense of a model from a physical standpoint. A great example demonstrating this can be found in JMP’s Help->Sample Data->Industrial Experiments->Tablet Production.jmp example. Run the Fit Model and Fit Model with Interaction Profiles scripts and observe the difference between the two models.
Main Effects model:
Main Effects+Interactions+Quadratic model
In the 2nd Profiler, observe the Mill Time variable showing the effect of introducing a quadratic effect on our model. As you adjust the Mill Time value from 5 to 30 you will observe the physical impact of this term on our model: a peak in our Disso response between the two extremes.
This is in contrast to the Main Effects model where we see a linear trend, leading us to expect improving performance in Disso as we increase Mill Time.
JMP’s Statistics Knowledge Portal provides excellent an excellent description, including visuals, of how the math works with Multiple Linear Regression. You might also take a look at the Statistical Thinking for Industrial Problem Solving Correlation and Regression module to learn more.