All of the Following Are True, with the Exception of One

question 62

Multiple Choice

All of the following are true, with the exception of one condition:

• A)a high R² or \(\bar { R } ^ { 2 }\) does not mean that the regressors are a true cause of the dependent variable.
• B)a high R² or \(\bar { R } ^ { 2 }\) does not mean that there is no omitted variable bias.
• C)a high R² or \(\bar { R } ^ { 2 }\) always means that an added variable is statistically significant.
• D)a high R² or \(\bar { R } ^ { 2 }\) does not necessarily mean that you have the most appropriate set of regressors.

---

Definitions:

Profit-Maximizing

A business strategy focused on finding the optimal level of output at which total revenues exceed total costs by the greatest amount.

Marginal Cost

The change in total cost that arises from producing one additional unit of a product or service.

Marginal Revenue

The increase in income resulting from the sale of one extra product or service unit.

Increasing Profits

Refers to a scenario where a business experiences a rise in net earnings over a period, typically as a result of higher revenue, cost efficiencies, or favorable market conditions.