A small business owner has created a linear regression model to predict the number of new customers who will visit a shop based on the number of times the owner has an advertisement played on the radio. What is the explanatory variable and what is the response variable?

A. Explanatory: number of new customers; response: number of times the advertisement is played

B. Explanatory: number of times the advertisement is played; response: number of new customers

C. Explanatory: number of times the advertisement is played; response: number of purchases made by customers

D. Explanatory: number of purchases made by customers; response: number of times the advertisement is played

E. Explanatory: number of previous customers; response: number of new customers

Option B) B. Explanatory: number of times the advertisement is played; Response: number of new customers

Step-by-step explanation:

We are given the following situation:

A small business owner has created a linear regression model to predict the number of new customers who will visit a shop based on the number of times the owner has an advertisement played on the radio.

Dependent and independent variable:

The dependent variable is the variable whose value changes with change in the independent variable. Dependent variable are also knows as response variable. Independent variable is known as explanatory variable. Independent variable is the free variable.

Dependent Variable:

number of new customers

Independent variable:

number of times the owner has an advertisement played on the radio.

Option B) B. Explanatory: number of times the advertisement is played; Response: number of new customers