In Regression Analysis, the Variables Used to Help Explain or Predict

question 12

Multiple Choice

In regression analysis, the variables used to help explain or predict the response variable are called the:

• A) independent variables
• B) dependent variables
• C) regression variables
• D) statistical variables

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Definitions:

Supply Function

A mathematical representation showing the relationship between the quantity of a good supplied by producers and various factors influencing that quantity, such as the good's price.

Demand Function

A mathematical representation showing the quantity of a good that consumers are willing and able to purchase at various prices.

Subsidy

A financial contribution granted by the government to reduce the production costs and encourage the supply of certain goods or services.

Quantity Tax

A tax levied on a specific quantity of a good or service, as opposed to its value, affecting the supply and potentially the price.