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

question 194

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SCENARIO 13-14-B
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-DataB.XLSX.  MILK 84686101876103248705087607286615875081051951203516865885478919021103741253641594011028831131511332971400731454341525131282751380401612762080792241192310711221141322221550921772731963992053298956494838949209757710216310375423958523977324129324915729438831881366462100444103846154118155460 COWS 2120221716202119211922242626272227242724292125263331332327292728322226242628263944424142471821222727\begin{array} { r r r r r r r r r r r } \text { MILK } & 84686 & 101876 & 103248 & 70508 & 76072 & 86615 & 87508 & 105195 & 120351 & 68658 \\& 85478 & 91902 & 110374 & 125364 & 159401 & 102883 & 113151 & 133297 & 140073 & 145434 \\& 152513 & 128275 & 138040 & 161276 & 208079 & 224119 & 231071 & 122114 & 132222 & 155092 \\& 177273 & 196399 & 205329 & 89564 & 94838 & 94920 & 97577 & 102163 & 103754 & 239585 \\& 239773 & 241293 & 249157 & 294388 & 318813 & 66462 & 100444 & 103846 & 154118 & 155460 \\\text { COWS } & 21 & 20 & 22 & 17 & 16 & 20 & 21 & 19 & 21 & 19 \\& 22 & 24 & 26 & 26 & 27 & 22 & 27 & 24 & 27 & 24 \\& 29 & 21 & 25 & 26 & 33 & 31 & 33 & 23 & 27 & 29 \\& 27 & 28 & 32 & 22 & 26 & 24 & 26 & 28 & 26 & 39 \\& 44 & 42 & 41 & 42 & 47 & 18 & 21 & 22 & 27 & 27\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-B, the conclusion on the test of whether the number of milking cows is a good predictor for the total milk production using a 5% level of significance is


Definitions:

Special Type

Implies a particular category distinguished by a specific or unique characteristic within a broader classification.

Agency Relationship

A legal and fiduciary bond between two parties where one, the agent, is authorized to act on behalf and represent the interests of the other, the principal.

Terminated

The condition of being brought to an end or concluded, often referring to contracts, employment, or agreements.

Insolvency

The state of being unable to pay debts as they fall due or having liabilities exceed assets.

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