suppose you work for Lexmark (an ink company). You try to forecast future sales of printer ink based on the price of ink, the price of competitors ink, advertising expenditures, the local unemployment rate, and shipping costs.

Answer the following questions.

(a) Suppose a coworker claims you should include a squared term in your regression model. Why might your coworker suggest this?

(b) Another coworker claims that this would be an example of applied research. Do you agree? Explain.