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(Situation M) Fast Food Chains Are Closely Watching What Proposed t=t =

Question 19

Multiple Choice

(Situation M) Fast food chains are closely watching what proposed legislation will do to consumption of "huge meals" in the United States. Researchers have accumulated statistics on the annual consumption of "huge for the past 25 years. The goal of the analysis is to use the past data to predict future consumption and then compare the predicted consumption to the actual consumption in those years.
-Propose a straight-line model for the long-term trend of the time series. Do not include a seasonal component. Let t=t = the year in which the data was collected (t=1,2,,25) ( t = 1,2 , \ldots , 25 ) .


A) E(Yt) =β0+β1t+β2Q1+β3Q2+β4Q3E \left( Y _ { t } \right) = \beta _ { 0 } + \beta _ { 1 } t + \beta _ { 2 } Q _ { 1 } + \beta _ { 3 } Q _ { 2 } + \beta _ { 4 } Q _ { 3 }
B) E(Yt) =β1t\mathrm { E } \left( \mathrm { Y } _ { \mathrm { t } } \right) = \beta _ { 1 } \mathrm { t }
C) E(Yt) =β0+β1Q1+β3Q2+β4Q3\mathrm { E } \left( \mathrm { Y } _ { \mathrm { t } } \right) = \beta _ { 0 } + \beta _ { 1 } \mathrm { Q } _ { 1 } + \beta _ { 3 } \mathrm { Q } _ { 2 } + \beta _ { 4 } \mathrm { Q } _ { 3 }
D) E(Yt) =β0+β1t\mathrm { E } \left( \mathrm { Y } _ { \mathrm { t } } \right) = \beta _ { 0 } + \beta _ { 1 } \mathrm { t }

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