how well does the income of a college students parents predi

how well does the income of a college student\'s parents predict how much the student will borrow to pay for college? We have data on parents\' income and college debt for a sample of 1200 recent college graduates. What are the explanatory and response variables? Are these variables categorial or quantitative? Do you expect a positive or negatice association between these variables? Why?

Solution

Parent\'s income would be the explanatory variable and college debt would be the response variable.

Both the variables are quantitative variables as both of them are measured on numerical (quantitative) scale.

A negative association is expected between these variables because, as parents\' income would increase, they would invest more for student\'s college and hence college debt would decrease.