## Related questions with answers

Many factors affect the price of wine, including such qualitative characteristics as the variety of grape, location of the 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 the 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 $+0.55 \mathrm{Age}$

One of these interpretations is accurate. Which is it? Describe what is wrong with the others.

a) The minimum price for a bottle of wine that has not aged is $\$ 6.25$.

Solution

VerifiedIn this exercise, we should figure out which statement is correct and why the others are not.

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