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Answer: explained variable.
In a simple linear regression model, the variable whose variation is being explained is termed the **dependent variable** or **explained variable**, typically denoted by Y. Here, the supply of wheat is the variable being explained by the demand for corn, making it the explained variable. - **Option A (indicator variable)**: Incorrect, as an indicator variable is a binary variable (0 or 1) used to represent categorical data, not the dependent variable in this context. - **Option C (independent variable)**: Incorrect, as the independent variable (or explanatory variable, denoted by X) is the demand for corn, which is used to explain the variation in the supply of wheat.
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An analyst conducts a simple linear regression to determine if the variation in the demand for corn explains the variation in the supply of wheat. In this regression model, the supply of wheat is referred to as the:
A
indicator variable.
B
explained variable.
C
independent variable.