Suppose you used Ordinary Least Squares OLS to estimate the

Suppose you used Ordinary Least Squares (OLS) to estimate the effect ticket price (in dollars) has on the number of skiers at Appalachian Ski Mountain.

Which of the following is true?

Select one:

a. number of skiers is a dependent and endogenous variable

b. ticket price is endogenous

c. ticket price is an exogenous and dependent variable

d. ticket price is a dummy variable

e. both a and b are correct

Solution

Since the effect of ticket price is tested over here, the ticket price would act as an independent variable and the number of skiers would act as a dependent variable.

Usually the endogenous variables are also the dependent variables. They are defined as the ones which can be explained from the model.

Thus, option \'A\' is correct.