Exercise
For the following pairs of variables, find the explanatory variable and the
response variable.
• For a group of cars: price & performance.
• For a group of people: drug dose for a medical treatment & health
condition.
• For a group of people: weight & height.
• For a group of people: age & income.
• For a group of people: consumption & income.

Exercise
For the following pairs of variables, find the response variable and the
explanatory variable.
A. For a group of student: Number of hours spent studying and score at
the final exam.
B. For a group of people: Life expectancy, fast food consumption.
C. For a group of countries: area (in ��2), number of inhabitants.

Introduction – Relationships between Pairs of Variables
Let’s look at some data relating the response variable sales for a particular
product and the explanatory variables TV, Radio, and Newspaper
advertising budgets (in thousands of dollars) for 200 companies.

Introduction – Relationships between Pairs of Variables (2)
In a statistical study, we often need to answer the following questions.
1. Does one of the advertising budgets have an impact on sales?
2. How strong is this impact?
3. How accurately can we estimate the effect of each medium?
4. Can we make predictions for future companies?
5. Is the relation linear (of the form � = �0 + �1�)?

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