Question

The quarterly increase in a healthcare organization's revenue depends on the patient rating (poor, good, excellent, outstanding) of the organization and several other factors as shown in the model below:

revenue=β0+β1*rating+other factors+ε

The variable "rating" is a _______ variable.

options:

	dependent
	continuous
	categorical
	count

Answer 1

Answer ) Option a) Dependent Variable

EXPLANATION

Option a) is correct because it is a variable which depends on other factors and values. example : Test Scores being good or bad can get you in a better college.

Option b) is incorrect since continous Variable is not the option since these variables can take on any value on a number line. Example: Age can be 2 or even 99.

Option c) is incorrect since a pure categorical variable are variables which allows you to assign categories but you cannot clearly order the variables. Here, we can order the variables with outstanding being the highest and poor being the lowest.

Option d) is incorrect since count Variables are not the option since these are discrete variables and can take values of non negative integers.