Multiple Choice

An economist creates a model to predict weekly ice cream sales. The model's only variable is the average daily temperature, assuming all other factors that could influence sales are held constant. The model predicts that a 10-degree increase in temperature will cause sales to rise by 20%. However, after a week of 10-degree warmer weather, the economist observes that sales actually fell by 5%. Which of the following statements best analyzes the discrepancy between the model's prediction and the real-world outcome?

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Updated 2025-08-02

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