The dependent variable is the variable of the primary interest to the researcher. The researcher's goal is to understand and describe the dependent variable, or to explain its variability to predict it. In other words it is the main variable that lends itself for investigation as a viable factor. Through the analysis of the dependent variable it is possible to find answers or solutions to the problem. For this purpose the researcher will be interested in quantifying and measuring the dependent variable as well as the other variables that influence this variable.

An independent variable is one that influences the dependent variables in either a positive or negative way. That is when the independent variable is present the dependent variable is also present and with each unit of increase in the independent variable there is an increase or decrease in the dependent variable also. In other words the variance in the dependent variable is accounted for by the independent variable. To establish causal relationship the independent variable is manipulated. Research studies indicate that new product development has an influence on the stock market price of the company. That is the more successful the new product turns out be the higher will be the stock market price of that firm.

An independent variable is one that influences the dependent variables in either a positive or negative way. That is when the independent variable is present the dependent variable is also present and with each unit of increase in the independent variable there is an increase or decrease in the dependent variable also. In other words the variance in the dependent variable is accounted for by the independent variable. To establish causal relationship the independent variable is manipulated. Research studies indicate that new product development has an influence on the stock market price of the company. That is the more successful the new product turns out be the higher will be the stock market price of that firm.