Question

Each month a bank adjusts the initial interest rate it offers to customers who wish to open a new high-yield savings account. The bank wants to determine if there is a relationship between the initial interest rate and the average daily number of new savings accounts. The bank plans to use the interest to predict the average number of new savings accounts opened in a month. Which one of the following statements is correct?

A. Both the interest rate and the average daily number of new accounts are explanatory variables.
B. Both the interest rate and the average daily number of new accounts are response variables.
C. Average daily number of new a variable.
D. Interest rate is the explanatory variable 1/0 Scatterplot of Ave.

Answer 1

The correct answer is D

Step-by-step explanation:

The initial interest rate is being manipulated by the researcher (that is the bank). Hence is the predictor or explanatory variable. It can also be called the independent variable.

Any variable can take on the quality of an independent variable. It all depends on the role it is playing in the research.

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