Question

If the level of advertising expenditures is compared to the number of units sold at the end of a four-month period, the independent variable is ______ while the dependent variable is ______.

Answer 1

Answer:

If the level of advertising expenditures is compared to the number of units sold at the end of a four-month period, the independent variable is advertising expenditure level while the dependent variable is units sold.

Explanation:

An independent variable is a variable that does not depend on another variable. A variable on the other hand is something that is not consistent with time. In the context of a business, there exists various variables. Some examples of variables are; expenditures in advertising, revenue levels, number of units produces and even the number of units sold. An example of an independent variable in our case is the level of advertising expenditures. Advertising can be defined as the act of producing information for the sole purpose of promoting a business. Advertising is a major component of a business that if utilized effectively can increase a company's market share and ultimately the company sales.

The advertising expenditures related to the total amount that a company spends on advertising. In this context, the level of advertising does not depend on any other known variable. This means that advertising expenditure is an example of an independent variable. However, the number of units sold will definitely depend on the level of advertising expenditure. In general, when the level of advertising expenditures increases, the number of sales also increases.