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Below is the output of several different models that Caterpillar has built to predict next quarter sales. Caterpillar predicting Next Quarter Sales R2 R2adj Model

Below is the output of several different models that Caterpillar has built to predict next quarter sales. Caterpillar predicting Next Quarter Sales R2 R2adj Model A (3): Weather, recent quarter sales, housing starts 0.56 0.69 Model B (3): Interest rates, worldwide GDP, housing starts 0.59 0.58 Model C (3): Weather, worldwide GDP, housing starts 0.58 0.57 Which model is the optimal combination of explanatory variables Question 3 options: a) D b) B c) A d) C

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