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

True/False

SCENARIO 15-7-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
Scenario15-7-DataB.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-B, you should not keep the quadratic term for the
number of laborers 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.