Suppose You Are Given a Set of Regression Results on the Role

Multiple Choice

Suppose you are given a set of regression results on the role of a random treatment assignment experiment on the effect of an ad campaign on consumers' willingness to buy your product. The regression results report an R-squared of 0.04. How should you value the regression results?

A) Not highly, the R-squared is far too low.
B) Highly, despite the low R-squared it is likely the effect estimated is causal and valuable for active prediction.
C) Highly, the R-squared value is still high enough to justify that the effect is causal.
D) Not highly, the implied correlation of the R-squared is too low.