In estimating the effect of price on sales, what is likely to be a confounding factor that one would at best have only a proxy variable for?
A) Price
B) Sales
C) Month
D) Brand awareness

Question

Quizplus · Accepted Answer

Brand awareness is likely to be a confounding factor that can affect sales, but it may be difficult to measure accurately. One would have to rely on proxy variables such as advertising spend or social media presence to estimate its impact. Price and sales can be directly measured, and month can be controlled for in the analysis.

In Estimating the Effect of Price on Sales, What Is