The Distinction Between Endogenous and Exogenous Variables Is

question 12

Multiple Choice

The distinction between endogenous and exogenous variables is

• A)that exogenous variables are determined inside the model and endogenous variables are determined outside the model.
• B)dependent on the sample size: for n > 100, endogenous variables become exogenous.
• C)depends on the distribution of the variables: when they are normally distributed, they are exogenous, otherwise they are endogenous.
• D)whether or not the variables are correlated with the error term.

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Definitions:

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The set of external and internal factors that influence an organization's operating situation, including regulatory, economic, social, and technological factors.

Product and Service Mix

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The process of deciding the geographical placement of operations, factories, or offices of a business.

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