A variable that influences endogenous variables but is not explained within the theory is called a dependent variable.
Understand the Problem
This question is testing your understanding of the definitions of endogenous and exogenous variables in the context of economic or statistical models. It asks you to identify the correct term for a variable that influences endogenous variables but is not explained within the model itself.
Answer
False, the variable is called an exogenous variable.
The statement is false. A variable that influences endogenous variables but is not explained within the theory is called an exogenous variable.
Answer for screen readers
The statement is false. A variable that influences endogenous variables but is not explained within the theory is called an exogenous variable.
More Information
An exogenous variable is determined outside the model and influences the endogenous variable. An endogenous variable's value is determined by other variables in the system.
Tips
It is a common mistake to mix up the definitions of exogenous and endogenous variables. Remembering that 'exo' means outside can help you remember that exogenous variables are determined outside the model.
Sources
- Choose the statement that best describes how endogenous ... - homework.study.com
- Exogenous and endogenous variables - Wikipedia - en.wikipedia.org
- Exogenous Variable - an overview | ScienceDirect Topics - sciencedirect.com
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