Types of variables

A variable is something that could take on varying values. The values can different at many times for the same
object or person, or at the same time for different objects or persons.

Independent Variable
An independent variable is a variable which directly affect the dependent variable in either a
positive or negative way. The variance in the dependent variable is appeared due to independent
variable.
Example:
Covid-19 impact on foreign direct investment (FDI)
Here Covid-19 is independent variable while FDI is dependent variable

Dependent Variable
The dependent variable is the variable which is main target and measured and tested by
researcher to know the variation in it due to independent variable.

Example:

Impact of smoking on health (here Health is dependent variable and smoking is independent
variable)

Mediating Variable
The mediating variable is a variable which explain the relationship between the independent and
dependent variable, it also links and cause the mediation between independent and dependent
variable. A mediating variable is also called intervening variable.

Example:

Impact of level of education on spending (Level of education is independent and spending is

dependent variable while income is mediation variable)

Moderating Variable
A moderating variable is one that can strengthen, negate or effect the association between
independent variable and dependent variable. The presence of a third variable (the moderating
variable) modifies the original relationship between the independent and the dependent variables.

Example:

Gender is qualitative variable that moderate the strength of an effect between stress and health.