Question: If adding a squared term of the rainfall variable in a regression model between rainfall and umbrella sales results in a negative and significant coefficient
If adding a squared term of the rainfall variable in a regression model between rainfall and umbrella sales results in a negative and significant coefficient for the squared term, we may infer that
Select one:
a. After rainfall exceeds a certain level, umbrella sales decrease as rainfall increases
b. There exists no relationship between rainfall and umbrella sales
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
