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

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, the decision on the test of whether total milk production
depends linearly on the number of milking cows using a 1% level of significance is to ________
(reject or not reject) H0 .