When one company (A) buys another company(B), some workers ofcompany B are terminated. Terminated workers get severance pay. Tobe fair, company A fixes the severance payment to company B workersas equivalent to company A workers who were terminated in the lastone year. A 36-year-old Mohammed, worked for company B for the last10 years earning 32000 per year, was terminated with a severancepay of 5 weeks of salary. Bill smith complained that this is unfairthat someone with the same credentials worked in company A receivedmore. You are called in to settle the dispute. You are told thatseverance is determined by three factors; age, length of servicewith the company and the pay. You have randomly taken a sample of40 employees of company A terminated last year. You recorded

Number of weeks of severance pay

Age of employee

Number of years with the company

Annual pay in 1000s

Weeks SP	Age	Years	Pay	Weeks SP	Age	Years	Pay
13	37	16	46	11	44	12	35
13	53	19	48	10	33	13	32
11	36	8	35	8	41	14	42
14	44	16	33	5	33	7	37
3	28	4	40	6	27	4	35
10	43	9	31	14	39	12	36
4	29	3	33	12	50	17	30
7	31	2	43	10	43	11	29
12	45	15	40	14	49	14	29
7	44	15	32	12	48	17	36
8	42	13	42	12	41	17	37
11	41	10	38	8	39	8	36
9	32	5	25	12	49	16	28
10	45	13	36	10	37	10	35
18	48	19	40	11	37	13	37
10	46	14	36	17	52	20	34
8	28	6	22	13	42	11	33
15	44	16	32	14	42	19	38
7	40	6	27	5	27	2	25
9	37	8	37	11	50	15	36

Identify best subsets of variablesbased on Mallows Cp. What is the value of R-square to this “best”model? How many outliers are in the dataset? Use the criteria ofyour choice and mention it(them)