Below Gives the Data Concerning (1) the Dependent Variable Default

question 65

Multiple Choice

Below gives the data concerning (1) the dependent variable Default which equals 1 if a customer defaults on their loan and 0 if they do not; (2) the independent variable Price of Home, which is the price of the home (in hundred tens) and (3) the independent variable First Purchase which equals 0 if the customer has owned a home before and 1 if this is their first home. Identify the independent variables in this equation.

• A) Price of Home and Default
• B) Default
• C) Price of Home, First Purchase, Default
• D) Price of Home and First Purchase

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Definitions:

Behaviour Guide

A set of recommendations or rules designed to influence or direct how individuals act in specific situations.

Resistance to Change

The opposition or pushback encountered when individuals or organizations face alterations in their normal procedures or ways of doing things.

Feedback

Information provided about the outcome of a process or performance of a task, intended as a basis for improvement.

Consumer Surplus

The split between the comprehensive sum consumers are prepared to offer for a good or service and the sum they truly pay.