Which of the following statements is true about Endogenous variables?Endogenous variables are independent variableEndogenous variables is the dependent variableThe value of endogenous variables determines the value of dependent variableEndogenous variables is the same as exogenous variables
Question
Which of the following statements is true about Endogenous variables?Endogenous variables are independent variableEndogenous variables is the dependent variableThe value of endogenous variables determines the value of dependent variableEndogenous variables is the same as exogenous variables
Solution
The true statement about Endogenous variables is: "Endogenous variables is the dependent variable".
Endogenous variables are those variables in a statistical model that are explained, or predicted, by that model. In other words, they are the output or result of the model. This makes them dependent variables, as their value depends on the other variables in the model.
The other statements are not correct. Endogenous variables are not independent variables, their value does not determine the value of dependent variables (it's the other way around), and they are not the same as exogenous variables (which are independent variables that affect the endogenous variables).
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