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

Short Answer

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, what is your decision on testing whether the quadratic term for
the number of laborers is statistically significant at the 10% level of significance after you have
performed a multiple regression that includes the quadratic terms for the number of milking cows,
land size and the number of laborers?