You are asked to write a report on how specific variables impact your client’s sales using a data
set provided to you by the client. The data includes 15 variables that the client views as directly
related to sales, and you are restricted to these variables only.
After a preliminary analysis of the data, the following findings were made:
1. Multicollinearity is not an issue among the variables
2. Only three variables—A, B, and C—have significant correlation with sales
You build a linear regression model on the dependent variable of sales with the independent
variables of A, B, and C. The results of the regression are seen in the exhibit.
Which interpretation is supported by the analysis?
A. Variables A,B,and C are significantly impacting sales,but are not effectively estimating sales
B. Variables A,B,and C are significantly impacting sales and are effectively estimating sales
C. Due to the R2 of 0.10,the model is not valid – the linear regression should be re-run with all 15
variables forced into the model to increase the R2
D. Due to the R2 of 0.10,the model is not valid – a different analytical model should be attempted