Management must be careful in its use of statistically estimated demand functions because variables that are related statistically do not necessarily have a cause-effect relationship to one another and because important variables may have been excluded.

Question

Quizplus · Accepted Answer

Statistically estimated demand functions may have variables that are related but not causally related, and important variables may have been left out, so management should exercise caution in their use.

Management Must Be Careful in Its Use of Statistically Estimated