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

question 24

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 $t =$ the year in which the data was collected $( t = 1,2 , \ldots , 25 )$ .

• A) \(E \left( Y _ { t } \right) = \beta _ { 0 } + \beta _ { 1 } t + \beta _ { 2 } Q _ { 1 } + \beta _ { 3 } Q _ { 2 } + \beta _ { 4 } Q _ { 3 }\)
• B) \(\mathrm { E } \left( \mathrm { Y } _ { \mathrm { t } } \right) = \beta _ { 1 } \mathrm { t }\)
• C) \(\mathrm { E } \left( \mathrm { Y } _ { \mathrm { t } } \right) = \beta _ { 0 } + \beta _ { 1 } \mathrm { Q } _ { 1 } + \beta _ { 3 } \mathrm { Q } _ { 2 } + \beta _ { 4 } \mathrm { Q } _ { 3 }\)
• D) \(\mathrm { E } \left( \mathrm { Y } _ { \mathrm { t } } \right) = \beta _ { 0 } + \beta _ { 1 } \mathrm { t }\)

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Definitions:

Management

The act of directing and controlling a group or organization to achieve goals.

Inventory Reduction

A decrease in the amount of inventory a company holds, often achieved through sales or more efficient production processes.

Lean Principle

A methodology focused on minimizing waste within manufacturing systems while simultaneously maximizing productivity.

Wait Time

The period a customer or process needs to wait before an action is taken or service is provided, often a measure of efficiency.