Market researcher Ally Nathan is studying the relationships among price, type (classical or steel string), and consumer demand for acoustic guitars. She wants to find the relationship between demand and price, controlling for type.
To determine this relationship, she should:
Source
- Run a simple regression of the dependent variable demand on the independent variable price and observe the coefficient on price.
- Run a simple regression of the dependent variable demand on the independent variable type and observe the coefficient on type.
- Run a multiple regression of the dependent variable demand on the independent variables price and type and observe the coefficient on price.
- Run a multiple regression of the dependent variable demand on the independent variables price and type and observe the coefficient on type.