What Would Be a Possible Independent Variable in a Regression

question 9

Multiple Choice

What would be a possible independent variable in a regression determining "How do lenders set interest rates paid by borrowers?" at a lender?

• A) Interest rate charged/paid to borrower
• B) Borrower credit history
• C) Borrower salary
• D) Borrower debt

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Definitions:

Bureau of Labor Statistics

A unit of the United States Department of Labor that is responsible for collecting and analyzing important economic data, including employment and unemployment statistics.

Unemployed

Individuals who are capable of working and actively seeking employment but are unable to find a job.

Cyclical Unemployment

Unemployment that results from economic downturns or recessions, where there is insufficient demand for labor.

Bureau of Labor Statistics

A U.S. government agency that collects and analyses critical economic information, particularly employment and price statistics.