Question

A sales manager of a large insurance company collects the data on annual insurance sales ($1000s) and years

of experience of salespersons. (a) Define explanatory and response variables.

Answer 1

Explanatory variable: Years of experience

Response Variable: Annual insurance rates

Explanation:

As the years of experience increase, the annual insurance sales also increase. So annual insurance rates depend on the years of experience.

Consequently, years of experience is the explanatory variable while insurance rates is the response variable