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SCENARIO 16-15-B
You Are the CEO of a Diary Company

question 198

True/False

SCENARIO 16-15-B
You are the CEO of a diary company. The total milk production (in gallons) from your company
over the past 30 years are presented below and also contained in the Excel file SCENARIO 16-
15-B.XLSX.  Year 198619871988198919901991199219931994199519961997199819992000200120022003200420052006200720082009201020112012201320142015 Milk 150201193718212520214553237507248069241824234627252049252029 Prod 263449260689247900260059268197249477246216265236256364241705245932243529241551247697248454241974235823243517238490248606\begin{array} { l r r r r r r r r r r r } \text { Year } & 1986 & 1987 & 1988 & 1989 & 1990 & 1991 & 1992 & 1993 & 1994 & 1995 \\& 1996 & 1997 & 1998 & 1999 & 2000 & 2001 & 2002 & 2003 & 2004 & 2005 \\& 2006 & 2007 & 2008 & 2009 & 2010 & 2011 & 2012 & 2013 & 2014 & 2015 \\\text { Milk } & 150201 & 193718 & 212520 & 214553 & 237507 & 248069 & 241824 & 234627 & 252049 & 252029 \\\text { Prod } & & & & & & & & & \\& 263449 & 260689 & 247900 & 260059 & 268197 & 249477 & 246216 & 265236 & 256364 & 241705 \\& 245932 & 243529 & 241551 & 247697 & 248454 & 241974 & 235823 & 243517 & 238490 & 248606\end{array} You want to predict your company's future total milk production using the linear trend, quadratic
trend, exponential trend, first-order autoregressive, second-order autoregressive and third-order
autoregressive model.
-Referring to Scenario 16-15-B, you can conclude that the first-order
autoregressive model is appropriate at the 5% level of significance.

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Definitions:

Middle Lamella

The layer composed of pectin polysaccharides that serves to cement together the primary cell walls of adjacent plant cells.

Primary Walls

The thin, flexible and extensible layer of the cell wall that is first formed when a plant cell is growing, made mainly of cellulose and other polysaccharides.

Scanning Electron Microscopy

A type of electron microscopy that produces high-resolution images of the surface of a sample by scanning it with a focused beam of electrons.

Electron Beam

A stream of electrons moved through a vacuum or air, utilized in various applications including welding and electron microscopy.

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