Solved

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

Question 1

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 that includes both a long-term trend and a seasonal component for the time series. Let t=t = the year in which the data was collected (t=1,2,,25) ( t = 1,2 , \ldots , 25 ) and let Q1,Q2Q _ { 1 } , Q _ { 2 } , and Q3Q _ { 3 } be dummy variables used to model a seasonal effect.


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

Correct Answer:

verifed

Verified

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents