In Regression Analysis, the Dependent Variable

question 6

Multiple Choice

In regression analysis, the dependent variable

• A)is always quantity demanded.
• B)is the variable whose variation is to be explained.
• C)is one of the factors that explains what is happening with demand.
• D)is represented by the inverse demand function.

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Definitions:

Multiple Regression Model

A statistical technique that uses several explanatory variables to predict the outcome of a response variable.

Error Term

The error term represents the difference between observed values and the values predicted by a model in statistical analysis.

Independent Variables

Variables in an experiment or model that are manipulated or categorized to observe their effect on dependent variables.

Goodness of Fit

A statistical test used to determine how well observed data match the expected data from a model.