The managers at a local 5-star restaurant are considering the addition of 10 win

Question

The managers at a local 5-star restaurant are considering the addition of 10 wines to their wine list. A sommelier at this establishment has reviewed and rated these wines. The ratings were on a 1 (very poor) to 9 (unsurpassed excellence) Likert scale. In addition to the sommelier's rating score, the wine's retail price was also recorded. An LSR linear model for price versus quality rating resulted in a linear correlation coefficient of 0.90.

The predictor variable can be classified as:

Quantitative and ordinal Quantitative and discrete Categorical & nominal Categorical & ordinal Quantitative and continuous

Based on the correlation coefficient we can conclude that:

A ) Wines with lower ratings were likely to be more expensive (probably due to lower demand)

B) Higher quality ratings causes wine to have higher retail cost    

C) Wines with a higher rating generally cost more

D) Wines with higher ratings were likely to be less expensive (probably due to higher demand)

E) In general the reviewer rated less expensive wines higher than the more costly varieties

Explanation / Answer

1. Our predictor variable is the rating given to the wine so it is a categorical and ordinal variable

2. Since the correlation coefficient between the price versus quality rating is 0.90, this means the wines with the higher rating generally cost more. So correct answer is C

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