Refer to exhibit.
You are asked to write a report on how specific variables impact your client’s sales using a data set provided to
you by the client. The data includes 15 variables that the client views as directly related to sales, and you are
restricted to these variables only.
After a preliminary analysis of the data, the following findings were made:
1. Multicollinearity is not an issue among the variables
2. Only three variables–A, B, and C–have significant correlation with sales You build a linear regression model
on the dependent variable of sales with the independent variables of A, B, and C. The results of the regression
are seen in the exhibit. You cannot request additional datA.
What is a way that you could try to increase the R2of the model without artificially inflating it?

A.
Create clusters based on the data and use them asmodel inputs

B.
Force all 15 variables into the model as independent variables

C.
Create interaction variables based only on variables A,B,and C

D.
Break variables A,B,and C into their own univariate models