In a regression equation, what does the dependent variable represent?

Prepare for the CMT Level 2 Exam with our quiz. Study with flashcards and multiple choice questions, each with hints and explanations. Get ready to excel on your path to becoming a Chartered Market Technician!

In a regression equation, the dependent variable is the factor that is being predicted or estimated based on the independent variable(s). It represents the outcome or response that researchers are interested in analyzing. For example, in a simple linear regression where you might be trying to understand how advertising spending influences sales revenue, sales revenue is the dependent variable since it is the value you want to predict based on changes in advertising expenditures.

This is a core concept in regression analysis, where the dependent variable relies on one or more independent variables to express a relationship or to forecast future values. By understanding this relationship, analysts can draw insights and make data-driven decisions.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy