Question

Hello in an example where, I will use multiple regression to predict income based on educational...

Hello in an example where, I will use multiple regression to predict income based on educational attainment (having a high school diploma) and based on the occupation, would the dependent variable be "income" and the independent variables be "educational attainment" and "occupation?"

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Answer #1

Actually we can say that variables are dependent variables those which are used to predict a certain situation from the data based on independent variables. As your model is multiple regression so there should be more than one independent variables to predict the dependent variable. Here you want to predict income so it is the dependent variable and rest of those are independent variables. Obviously we can predict someone's income from educational attainment and occupation. Those who are having high qualifications obviously they will have a classy occupation and their salary should be higher than others. So income rate is high.

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