A statistical model is developed by a team of researchers who predict the probability of a financial debt going bad after 90 days. The prediction made by the model is based on several variables such as age, education, credit score, and average savings balance of the debtor. Which is the dependent variable in this model?
A) probability of bad debt
B) age of debtor
C) education of debtor
D) average savings balance

Question

Quizplus · Accepted Answer

The dependent variable is the outcome the model is predicting, which in this case is the "probability of bad debt" after 90 days. The other variables (age, education, credit score, and average savings balance) are independent variables used to predict this outcome.

A Statistical Model Is Developed by a Team of Researchers