If we seek to explain the number of seats sold on a particular air route,say Toronto to Halifax,over a one- year period,we would consider many variables.Which of the following variables would be endogenous to our theory?
A)the number of airline seats sold on this route
B)the price of jet fuel
C)the average salary of Canadian airline pilots
D)the number of fog days in Halifax
E)the unemployment rate in Toronto

Question

Quizplus · Accepted Answer

The number of airline seats sold on this route is directly related to the demand for air travel on this route, making it endogenous to our theory. The other variables may have some influence on the number of seats sold, but they are not directly related to the demand for air travel on this route.

If We Seek to Explain the Number of Seats Sold