Dummy Variables. Many explanatory variables have numerical values—inches, pounds, and dollars. However other explanatory variables are categorical—male or female, white or nonwhite, Republican or Democrat. We can handle categorical variables by using 0-1 dummy variables, variables whose values are 0 or 1, depending on whether or not a.. In market research, explanatory variables refer to the characteristics that influence consumer behavior. Response variables, on the other hand, are the outcomes of interest that are measured in response to the changes in the explanatory variables. In experimental research, a variable is a factor that can change and can be changed.
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The distinction between explanatory and response variables is similar to another classification. Sometimes we refer to variables as being independent or dependent. The value of a dependent variable relies upon that of an independent variable. Thus a response variable corresponds to a dependent variable while an explanatory variable corresponds.. The difference between explanatory and response variables is simple: An explanatory variable is the expected cause, and it explains the results. A response variable is the expected effect, and it responds to other variables.
