Question

Even though insignificant explanatory variables can raise the adjusted R 2 of a demand function, one should not interpret their effects on the regression when testing marketing hypotheses about the determinants of demand analyzing inventory relative to capacity requirements forecasting unit sales for operations planning sales revenue reaches its peak planning for capital budgets

Answer 1

Even though insignificant explanatory variables can raise the adjusted R 2 of a demand function, one should not interpret their effects on the regression when testing marketing hypotheses about the determinants of demand.

What is meant by demand function?

A demand function is described by the equation p=f(x), p = f (x), where p represents the unit price and x represents the quantity in question. A demand function is typically characterized as a decreasing function of x, meaning that it gets smaller as x grows.

What is meant by regression in statistics?

Regression analysis is a statistical method for connecting a dependent variable to one or more independent (explanatory) variables. A regression model can demonstrate whether variations in the dependent variable are related to variations in one or more explanatory variables.

Learn more about demand function: brainly.com/question/23611027

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