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Even Though Insignificant Explanatory Variables Can Raise the Adjusted R2

Question 22

Multiple Choice

Even though insignificant explanatory variables can raise the adjusted R2 of a demand function,one should not interpret their effects on the regression when


A) testing marketing hypotheses about the determinants of demand
B) analyzing inventory relative to capacity requirements
C) forecasting unit sales for operations planning
D) sales revenue reaches its peak
E) planning for capital budgets

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