You Can Visit the Official Website of Any Large Restaurant

question 36

Multiple Choice

You can visit the official website of any large restaurant chain to examine the nutritional data for menu items. For fast-food restaurants, many menu items are high in fat, so most of their calorie content comes from fat (rather than from carbohydrates or protein) . Here we investigate the relationship between the amount of fat in a menu item (in grams) and the number of calories. To predict the number of calories in a menu item given its fat content, we use the simple linear regression model calories =  +  (fat) , where the deviations are assumed to be independent and Normally distributed, with mean 0 and standard deviation . The explanatory variable in this study is:

• A)number of calories.
• B)fat content (grams of fat).
• C)the slope,  .
• D)12.546.

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Definitions:

Excise Tax

A tax imposed on the sale of specific goods and services, such as tobacco, alcohol, and gasoline.

Marginal Rate

The rate at which the cost or value of something changes with a one-unit increase in quantity or production.

Taxable Income

The amount of income used to calculate how much tax an individual or a company owes to the government in a given tax year.

Average Tax Rate

The proportion of total income that is paid in taxes, calculated by dividing total taxes paid by total income.