Question

You have three variables: response variable= student loan debt amount (measured in dollars) and the predictor variables are year in school (fr,so,jr,sr) and parents assisting (yes or no). Would you use ANOVA, Linear regression, or Logistic regression in this situation and why?

Answer 1

answer is : ANOVA

there are four levels of predictor variables year in school: fr,so,jr,sr ( nominal categorical variable)

there are two levels of predictor variables parent assisting:yes or no(nominal categorical variable)

the response variable is student loan debt amount in dollars is continuous variables. Here we should use two way analysis of variance (ANOVA).

In ANOVA ,test is a statistical test used to determine the effect of two nominal predictor variables ( categorical) on a continuous response variable and tests for differences in the effects of predictor variables on a response variable. A two-way ANOVA tests the effect of two independent/predictor variables on a dependent/response variable. A two-way ANOVA test analyzes the effect of the independent variables on the expected outcome along with their relationship to the outcome itself. Random factors would be considered to have no statistical influence on a data set, while systematic factors would be considered to have statistical significance. so ANOVA should be right choice