Limited Dependent Variable

A dependent variable is one that responds to changes in a given independent variable. A statistic, such as a coefficient of correlation, is calculated to determine the strength of this relationship.

In a linear model, all dependent variables are assumed to follow a straight line (i.e., they are linearly related to the independent variable).

However, this assumption may not always be valid due to TYPE II ERRORS.

Leave a Reply

Your email address will not be published. Required fields are marked *

Scroll to Top