A market research company is developing a regression model to predict monthly household expenditures on groceries as a function of family size, household income, and household neighbourhood (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

In the given regression model, the variable "income" is being used as one of the predictors or independent variables to predict the dependent variable of monthly household expenditures on groceries. Therefore, the correct choice is E - an independent variable.

A Market Research Company Is Developing a Regression Model to Predict