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

Question

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 scores of the wine and the age of the wine (in years) when released to markets. They found the following regression equation, with an R^2, of 85%, 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 in correct. Which is it? Choose the correct answer below. A. 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 scores. B. Each year a bottle of wine ages, its tasting scores increases by exist1.22. C. The minimum price for a bottle of wine that has aged is exist%6.25. D. Each dollar increase in the price of wine increases its tasting scores by 1.22.

Explanation / Answer

Correct Answer: Option (A) The price for a bottle of wine increaes on average bout $0.55 for each year it ages, after allowing for the effects of tasting score

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