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:

Validity

The extent to which a test or instrument measures what it is supposed to measure, indicating the accuracy of the results.

Standardized Test

An exam administered and scored in a consistent manner to ensure comparability across different test takers.

Consistent Results

Findings or outcomes from experiments or studies that are repeatedly similar under the same or similar conditions, indicating reliability.

Normal Curve

A statistical concept representing the distribution of a set of data that forms a bell-shaped curve, indicating average scores at the center and deviations spread equally around it.