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 unemployment rate in Toronto.
B)the number of fog days in Halifax.
C)the number of airline seats sold on this route.
D)the world price of oil.
E)the price of the same trip by train

Question

Quizplus · Accepted Answer

The number of airline seats sold on the route is endogenous to our theory as it is the variable we are trying to explain.

If We Seek to Explain the Number of Seats Sold