A Market Analyst Is Developing a Regression Model to Predict

question 83

Multiple Choice

A market analyst is developing a regression model to predict monthly household expenditures on groceries as a function of family size, household income, and household neighborhood (urban, suburban, and rural) .The "neighborhood" variable in this model is ______.

• A)an independent variable
• B)a response variable
• C)a quantitative variable
• D)a dependent variable
• E)a constant

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Definitions:

Initial Investment

The initial amount of money spent to start a project, investment, or business, often including costs such as purchasing equipment, property, or technology.

Internal Rate of Return

The discount rate at which the net present value of all the cash flows from an investment or project equals zero, used as a gauge for its profitability.

Working Capital

The amount of current assets minus current liabilities, indicating the liquidity of a business.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period, used in capital budgeting to assess the profitability of an investment.