2 points variable explains the relation between the independent and the dependent variable. It explains how or why there is a relation between two variables. Mediating variable Extraneous variable Moderating variable Independent variable Which one is an example of a strategy? 2 points To have usable information needed for appropriate production decisions Make the inventory management system an efficient one To prevent out-of-stock situation Find out ways to make the inventory management system more efficient Efficient inventory management leads to higher profit. It is an example of: 2 points Moderating hypothesis Correlational hypothesis Exploratory hypothesis Causal hypothesis 2 points Bonus marks based evaluation system will increase students CGPA, is an example of Theory Hypothesis Exposition Model