When selecting explanatory variables to include in a regression
A) you should pick all observable variables available.
B) you should pick all observable variables that are likely to have a meaningful impact on the dependent variable.
C) ignore all variables that have t-statistics less than the critical value.
D) ignore variables that have an R2 less than 1.
Question 2
If average cost is positive
A) marginal cost equals average cost.
B) marginal cost exceeds average cost.
C) marginal cost is less average cost.
D) Not enough information is given.
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Answer the following short answer, please show your steps and include the formulas used