Term of the Day independent variable A factor or phenomenon that causes or influences another associated factor or phenomenon called a dependent variable. For example, income is an independent variable because it causes and influences another variableconsumption. In a mathematical equation or model, the independent variable is the variable whose value is given. In an experiment, it is the controlled condition(that is allowed to change in a systematic manner) whose effect on the behaviorof a dependent variable is studied. Also called controlled variable, explanatory variable, or predictor variable. Learn more about this term Usage Example When analysts are predicting future stock prices they look at independent variables, which include the level of a popular stock market index or the profit per share of the stock's issuing company.

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