Consider the following simple linear regression model: y = β₀ + β₁x + ε. The explanatory variable is ________. A) y B) x C) ε D) β₀

Question

Quizplus · Accepted Answer

The explanatory variable is the independent variable that is being used to explain the variation in the dependent variable. In this case, x is the only variable that fits this definition and is therefore the explanatory variable. The other variables (y, ε, and β₀) are all either the dependent variable or the error term/correction term/coefficient.

Consider the Following Simple Linear Regression Model: Y = β0

Consider the Following Simple Linear Regression Model: Y = β₀