In a multiple regression predicting accidents with independent variables such as number of automobiles registered, sales of alcoholic beverages, and rainfall, which is the dependent variable?

Prepare for the PHFO Quantitative Analysis For Business Exam. Study with flashcards, multiple choice questions, hints, and explanations to ensure confidence and success in your exam!

Multiple Choice

In a multiple regression predicting accidents with independent variables such as number of automobiles registered, sales of alcoholic beverages, and rainfall, which is the dependent variable?

Explanation:
In regression, the variable you’re trying to predict is the dependent variable, while the variables you use to predict it are the independent variables. Here, you’re predicting accidents using predictors such as the number of automobiles registered, sales of alcoholic beverages, and rainfall. That means accidents is the dependent variable—the outcome the model estimates. The other three variables are the independent variables, serving as inputs to explain variation in accidents. The remaining options are the predictors, not the outcome.

In regression, the variable you’re trying to predict is the dependent variable, while the variables you use to predict it are the independent variables. Here, you’re predicting accidents using predictors such as the number of automobiles registered, sales of alcoholic beverages, and rainfall. That means accidents is the dependent variable—the outcome the model estimates. The other three variables are the independent variables, serving as inputs to explain variation in accidents. The remaining options are the predictors, not the outcome.

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