(Situation L) a Farmer's Marketing Cooperative Recorded the Volume of Wheat

question 51

Multiple Choice

(Situation L) A farmer's marketing cooperative recorded the volume of wheat harvested by its members from 1991 The cooperative is interested in detecting the long-term trend of the amount of wheat harvested. The data collected is
shown in the table. $$\begin{array} { l c c } \hline & \text { Wheat Harvested by Coop. Member } \\\text { Year } & \text { Time } & ( \mathrm { y } , \text { in thousands of bushels) } \\\hline 1991 & 1 & 75 \\1992 & 2 & 78 \\1993 & 3 & 82 \\1994 & 4 & 82 \\1995 & 5 & 84 \\1996 & 6 & 85 \\1997 & 7 & 87 \\1998 & 8 & 91 \\1999 & 9 & 92 \\2000 & 10 & 92 \\2001 & 11 & 93 \\2002 & 12 & 96 \\2003 & 13 & 101 \\2004 & 14 & 102 \\\hline\end{array}$$
-A forecast was obtained for the year 2005 and the corresponding 95% prediction interval was found to be (103, 107) . Interpret this interval.

• A) We are 95% confident that the volume of wheat harvested in 2005 will be between 103,000 and 107,000 bushels.
• B) We are 95% confident that the mean volume of wheat harvested in all years will be between 103,000 and 107,000 bushels.
• C) We expect the volume of wheat harvested to increase between 103,000 and 107,000 bushels from one year to the next.
• D) We are 95% confident that the 2005 harvest will be between 103,000 and 107,000 bushels larger than the harvest in 2004.

---

Definitions:

Industry Structure

The characteristics and organization of an industry, including the number and size of companies, entry barriers, and level of competition.

Herfindahl Index

An economic measure of market concentration that sums the squares of the market shares of all firms within the industry.

Conglomerate Merger

A union of companies engaged in entirely different businesses, often to diversify portfolio risks and leverage managerial expertise across industries.

Antitrust Scrutiny

The examination and monitoring of companies and their practices by government agencies to ensure they do not engage in anti-competitive behavior, violating antitrust laws.