SCENARIO 15-7-A
You Are the CEO of a Dairy Company $\left( X _ { 1 } \right)$

question 126

True/False

SCENARIO 15-7-A
You are the CEO of a dairy company. You are planning to expand milk production by purchasing
additional cows, lands and hiring more workers. From the existing 50 farms owned by the company,
you have collected data on total milk production (in liters), the number of milking cows, land size (in
acres) and the number of laborers. The data are shown below and also available in the Excel file
Scenario15-7-DataA.XLSX. You believe that the number of milking cows $\left( X _ { 1 } \right)$ , land size $\left( X _ { 2 } \right)$ and the number of laborers $\left( X _ { 3 } \right)$ are the best predictors for total milk production on any given farm.
-Referring to Scenario 15-7-A, the model that includes only X2 and X3 should be
selected using the adjusted $r ^ { 2 }$ statistic.

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