Many factors affect the price of wine, indluding such qualitative characteristic

Question

Many factors affect the price of wine, indluding 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^2 of 65%. to predict the price (in dollars) of a bottle of wine. Price = 6.25 + 1.22 Tasting Score + 0.55 Age One of the following interpretations is correct. Which is it? Choose the correct answer below. A. Each dollar increase in the price of wine increases its tasting score by 1.22. B. Each year a bottle of wine ages, its tasting score increases by 1.22. C. The minimum price for a bottle of wine that has not aged is exist6.25. D. The price for a bottle of wine increases on average about exist0.55 for each year it ages, after allowing for the effects of tasting score.

Explanation / Answer

Option-D) The price for a bottle of wine increases on average about $0.55 for each year it ages, after allowing for the effects of tasting score.

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