SCENARIO 14-20-B
You Are the CEO of a Dairy Company $\left( X _ { 1 } \right)$

question 351

Short Answer

SCENARIO 14-20-B
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
Scenario14-20-DataB.XLSX.
MILK 84686 101876 103248 70508 76072 86615 87508 105195 120351 68658
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 14-20-B, what is the p-value of the test statistic when testing whether the
number of laborers has any effect on the total milk production while holding constant the effect
of the other independent variables?

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Definitions:

Pure Monopoly

A market structure in which a single seller controls the entire supply of a product or service, and therefore can manipulate prices and conditions of sale.

Close Substitutes

Products or services that are so similar that a consumer can easily replace one with another, often affecting consumer choice and market competition.

Sole Producer

A market situation where only one supplier exists for a particular good or service, often leading to monopolistic behaviour.

Average Revenue

The amount of money received by a firm per unit of output sold.