Executives at a large multinational corporation want to be able to predict the a
ID: 3329796 • Letter: E
Question
Executives at a large multinational corporation want to be able to predict the average revenue per month for the whole corporation for a given number of types of product sold. Data on revenue (in $1,000,000s) and types of product sold were collected for a sample of months. Complete parts a through c below a) Which variable is the explanatory or predictor variable? A. The explanatory variable is revenue per month because the executives want to know how revenue per month depends on types of product sold O B. The explanatory variable is revenue per month because the executives want to know how types of product sold depends on revenue per month. ° C. The explanatory variable is types of product sold because the executives want to know how types of product sold depends on revenue per month 0 D. The explanatory variable is types of product sold because the executives want to know how revenue per month depends on types of product sold b) Which variable is the response variable? A. B. C. D. The response variable is revenue per month because the executives want to know how types of product sold depends on revenue per month. The response variable is types of product sold because the executives want to know how revenue per month depends on types of product sold The response variable is revenue per month because the executives want to know how revenue per month depends on types of product sold The response variable is types of product sold because the executives want to know how types of product sold depends on revenue per month c) Which variable would you plot on the y-axis? 0 A. B. ° C. O D. Since types of product sold is the explanatory variable, it should be plotted on the y-axis Since revenue per month (in $1,000,000s) is the response variable, it should be plotted on the y-axis. Since types of product sold is the response variable, it should be plotted on the y-axis Since revenue per month (in $1,000,000s) is the explanatory variable, it should be plotted on the y-axis.Explanation / Answer
An explanatory variable is a type of independent variable. Response variable is dependent variable
a. Here we can see that executive is interested in prediction of average revenue per month by taking in account number of types of product sold.
Which means number of types of product sold is explanatory variable.
Hence answer is D.
b. Again from statement mention in A we get that response variable is revenue based on product sold.
Hence answer is C.
c. As reponse variables are on y axis, revenue should be on y axis
Hence answer is B.
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