Many factors affect the price of wine including such qualita

Many factors affect the price of wine, including such qualitative characteristics as the variety of grape, location of winery, and label Researchers developed a regression model considering two quantitative variables: the tasting score of the wine and the age of the wine (in years) when released to market. They found the following regression equation, with an R\" of 65%, to predict the price (in dollars) of a bottle of wine Price 6.251.22 Tasting Score0.55 Age One of the following interpretations is correct. Which is it? Explain what is wrong with the others a) Each year a bottle of wine ages, its price increases about $0.55 O A. This interpretation has the wrong age increase. It should be a $0.55 increase in price for every 6.25 year increase in age B. This interpretation does not mention the tasting score, so it is not correct. ° C. This interpretation has the wrong price increase. It should be a unit increase in price for every 0.55 0 D. This interpretation is correct. b) This model fits 65% of the points exactly A. The R2 value is not the number of points that match exactly it IS the percent variation in tasting score O B. The R2 value is not the number of points that match exactly, it is the percent variation in price O C. The R2 value is not the number of points that match exactly it is the percent variation in age increase in age explained by the model explained by the model explained by the model D. This interpretation is correct.

Solution

Answer to the question is as follows:

a. D is correct

b. B is the right way to interpret, that\' why it is right.

c. D is correct

d. D is correct. After allowing age\' effect, if you consider Tasting\' scores effect then per increase in tasting score, there is $1.22 increase in price of wine