Determine variables of interest, control variables, and explain how to decide which variables to include in...

Determine variables of interest, control variables, and explain how to decide which variables to include in a regression model

Expert Solution

Variable of interests are the variables that are prime concern of the study. It is the impact of these variables that the researcher wants to observe on the dependent variable.

On the other hand, there are control variables , these are the variables which are kept fixed during the study. Control variables are not the variables of interest but they are found to be having significant influence on dependent variable. It is the interest variables that affects the control variables which then further significantly influence the dependent variable. Ignoring the impact of control variables can lead to spurious regression.

Example, consider a researcher wants to see whether drinking coffee lead to cancer or not. Results tells that coffee is causing cancer, but this might be spurious. Further it has been observed that people who drink coffee tend to smoke cigrate along with that. And it is this cigarettes which is causing cancer. So while examining the effect of consumption of coffee on causing cancer, the number of cigarettes consumed should be kept fixed.

Hence in this case, no. Of cup of coffee consumed is variable if interest and number of cigarettes consumed is the control variable.

Rahul Sunny answered 1 year ago

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