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 "income" variable in this model is ____.
A)an indicator variable
B)a response variable
C)a qualitative variable
D)a dependent variable
E)an independent variable

Question

Quizplus · Accepted Answer

The "income" variable is an independent variable because it is one of the factors used to predict the dependent variable, which in this case is the monthly household expenditures on groceries. Independent variables are inputs or predictors in a regression model.

A Market Analyst Is Developing a Regression Model to Predict