For Each of the Following Scenarios, Indicate Which Is the Predictor

question 23

Essay

For each of the following scenarios, indicate which is the predictor variable and which is the response variable.
a. A study examined consumption levels of oil and carbon dioxide emissions for a sample of counties.
b. Data were collected on job performance rating and hours of training for a sample of employees at a telecommunications repair facility.
c. Salary data as well as years of managerial experience were collected for a sample of executives in the high tech industry.

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Definitions:

Risk-Free Rate

The theoretical return on an investment with no risk of financial loss, typically represented by the yield on government securities.

Market Risk Premium

An additional expected return that investors demand for choosing to invest in the stock market over a risk-free investment, reflecting the extra risk assumed.

Average Stock

The average price of a company's stock over a specific period, which can indicate the stock's general trend.

Diversified Portfolio

An investment portfolio that contains a mix of assets (e.g., stocks, bonds, real estate) to reduce risk through diversification.