SCENARIO 13-14-A
You Are the CEO of a Dairy Company

question 102

Short Answer

SCENARIO 13-14-A
You are the CEO of a dairy company. You are planning to expand 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) and the number of milking cows. The data
are shown below and also available in the Excel file Scenario13-14-DataA.XLSX. $$\begin{array} { l r r r r r r r r r r } \text { MILK } & 84729 & 101969 & 103314 & 70574 & 76144 & 86695 & 87600 & 105272 & 120422 & 68749 \\& 85541 & 91910 & 110465 & 125369 & 159470 & 102930 & 113214 & 133328 & 140086 & 145514 \\& 152589 & 128304 & 138093 & 161368 & 208136 & 224205 & 231090 & 122204 & 132311 & 155154 \\& 177268 & 196449 & 205324 & 89562 & 94840 & 94997 & 97625 & 102226 & 103832 & 239673 \\& 239861 & 241298 & 249196 & 294455 & 318871 & 66483 & 100459 & 103847 & 154141 & 155516 \\\text { COWS } & 18 & 24 & 22 & 19 & 21 & 19 & 22 & 19 & 24 & 18 \\& 20 & 25 & 26 & 27 & 29 & 24 & 25 & 28 & 26 & 28 \\& 27 & 21 & 24 & 27 & 33 & 32 & 32 & 22 & 25 & 26 \\& 29 & 29 & 28 & 25 & 21 & 23 & 24 & 28 & 25 & 39 \\& 40 & 40 & 39 & 42 & 47 & 19 & 20 & 21 & 25 & 31\end{array}$$ You believe that the number of milking cows is the best predictor for total milk production on any
given farm.
-Referring to Scenario 13-14-A, if you purchase 40 cows for the new farm, its mean total milk
production is estimated to be _________ liters.

Develop an appreciation for different types of analytical reports and their purposes.

Explore the implications of decision-making through feasibility, market, and failure analysis reports.

Analyze the effectiveness and drawbacks of the yardstick approach in structuring business reports.

Grasp the essentials of creating compelling proposals that address the client’s needs and challenges convincingly.

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Definitions:

Paid-In Capital

The amount of money a company has received from shareholders in exchange for shares of stock, beyond the par value of the shares.

Basic Earnings

The amount of net income available to common shareholders, divided by the common shares outstanding, representing a straightforward measure of earnings without adjustment.

Common Shares

Equity securities that represent ownership interest in a corporation, entitling shareholders to dividends and a say in corporate matters.

Weighted Average

A calculation that takes into account both the quantity and the significance of each item in a set to find an average that is influenced by the size or weight of each component.