Suzie's Bagels is a breakfast deli located on a university campus. Suzie wants to use regression analysis to estimate the demand for her bagel sandwiches. Suzie has collected daily data on the quantity of bagel sandwiches sold over the last year. In order to correctly specify the regression, all of the following variables should be considered except which one?
A)the prices charged by Suzie's competitors
B)the prices charged for university t- shirts
C)the amount Suzie spent on advertising
D)the prices of Suzie's bagel sandwiches

Question

Quizplus · Accepted Answer

The prices for university t-shirts are not directly related to the demand for bagel sandwiches and therefore do not need to be considered when specifying the regression. The other variables listed (prices charged by competitors, amount spent on advertising, and prices of Suzie's bagel sandwiches) all have a potential impact on the demand for bagel sandwiches and should be considered in the regression analysis.

Suzie's Bagels Is a Breakfast Deli Located on a University