![]() Those variables whose values are determined outside the model are known as exogenous or independent variables. When graphing, we typically place the dependent variable on the vertical or y-axis. In modeling causal relationships, the value of an endogenous or dependent variable depends upon the value of other variables in the model. The intercept value is the value of y when x is zero. We can express the same information, using an equation. In our example, there is a linear relationship between x and y. Once the points are plotted, the dots can be connected to form a line or curve. ![]() If the various values of x and y are given, the points can be plotted on the graph. While we will at times use all four quadrants, we typically spend most of our time in the first quadrant or the space where both the horizontal and vertical variables are positive. On the vertical axis, we also start at the origin or zero and the numbers as we go up increase and the numbers as we go down decrease.Ĭombining the horizontal and vertical axes allow us to look at the relationships between variables in two-dimensional space. To the right numbers increase and to the left numbers decrease. ![]() Recall that on a graph, there is a horizontal axis and a vertical axis.Īlong the horizontal axis, we start at the origin or a zero. Likewise, a graph can often be used to better understand relationships between variables. It is said that a picture is worth a thousand words. ![]()
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