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

---

Definitions:

Interactional Justice

Refers to the perceived fairness of the interpersonal treatment individuals receive from decision-makers, including respect and propriety in communication.

Benchmarking

The practice of comparing business processes and performance metrics to industry bests and best practices from other companies.

Outcome Fairness

The perception among employees that the outcomes they receive from the workplace are fair, equitable, and just, relating to decisions about rewards, promotions, or layoffs.

Involuntary Turnover

Occurs when an employer initiates the termination of an employee's contract for various reasons, such as underperformance or restructuring.