Question

In: Statistics and Probability

The production of wine is a​ multibillion-dollar worldwide industry. In an attempt to develop a model...

The production of wine is a​ multibillion-dollar worldwide industry. In an attempt to develop a model of wine quality as judged by wine​ experts, data was collected from red wine variants. A sample of 20 wines is provided in the accompanying table. Develop a multiple linear regression model to predict wine​ quality, measured on a scale from 0​ (very bad) to 10​ (excellent) based on alcohol content​ (%) and the amount of chlorides. Complete parts a through g below.

Quality   Alcohol_Content(%)   Chlorides
2   7.7   0.067
1   7.9   0.065
3   8.2   0.074
1   8.7   0.071
2   8.5   0.067
4   8.7   0.074
4   9.4   0.071
3   9.1   0.076
6   10.1   0.077
5   10.4   0.078
7   10.3   0.078
6   11.1   0.083
7   11.3   0.081
8   11.5   0.085
6   11.8   0.095
7   11.3   0.093
7   12.5   0.128
8   11.5   0.111
10   12.2   0.157
10   12.8   0.156

1. Construct a​ 95% confidence interval estimate for the mean quality rating for wines that have 10​% alcohol and 0.08 chlorides.

2. Construct a​ 95% prediction interval estimate for the quality rating for an individual wine that has 10​% alcohol and 0.08 chlorides.

Solutions

Expert Solution

Output using excel:

Regression Analysis
Regression Statistics
Multiple R 0.9274
R Square 0.8601
Adjusted R Square 0.8437
Standard Error 1.0906
Observations 20
ANOVA
df SS MS F Significance F
Regression 2 124.3296 62.1648 52.2641 0.0000
Residual 17 20.2204 1.1894
Total 19 144.5500
Coefficients Standard Error t Stat P-value Lower 95% Upper 95%
Intercept -9.8600 1.7608 -5.5997 0.0000 -13.5750 -6.1450
Alcohol_content 1.3338 0.2542 5.2476 0.0001 0.7976 1.8701
Chlorides 17.2144 14.9375 1.1524 0.2651 -14.3010 48.7299

1. 95% confidence interval estimate for the mean quality rating for wines that have 10​% alcohol and 0.08 chlorides.:

Lower limit = 4.3018

Upper Limit = 5.4094

2. 95% prediction interval estimate for the quality rating for an individual wine that has 10​% alcohol and 0.08 chlorides.

Lower limit = 2.4889

Upper Limit = 7.2223


Related Solutions

The production of wine is a​ multibillion-dollar worldwide industry. In an attempt to develop a model...
The production of wine is a​ multibillion-dollar worldwide industry. In an attempt to develop a model of wine quality as judged by wine​ experts, data was collected from red wine variants. A sample of 20 wines is provided in the accompanying table. Develop a multiple linear regression model to predict wine​ quality, measured on a scale from 0​ (very bad) to 10​ (excellent) based on alcohol content​ (%) and the amount of chlorides. Complete parts a through g below. Quality  ...
The production of wine is a​ multibillion-dollar worldwide industry. In an attempt to develop a model...
The production of wine is a​ multibillion-dollar worldwide industry. In an attempt to develop a model of wine quality as judged by wine​ experts, data was collected from red wine variants. A sample of 20 wines is provided in the accompanying table. Develop a multiple linear regression model to predict wine​ quality, measured on a scale from 0​ (very bad) to 10​ (excellent) based on alcohol content​ (%) and the amount of chlorides. Complete parts a through g below. LOADING......
The production of wine is a multibillion-dollar world-wide industry. In an attempt to develop a model...
The production of wine is a multibillion-dollar world-wide industry. In an attempt to develop a model of wine qual-ity as judged by wine experts, data was collected from red wine variants of Portuguese “Vinho Verde” wine. A sample of 50 wines is stored in VinhoVerde . Develop a multiple linear regression model to predict wine quality, measured on a scale from 0 (very bad) to 10 (excel-lent) based on alcohol content (%) and the amount of chlorides. State the multiple...
Florence is CIO of a multibillion-dollar home office for the Nelson family. She is discussing the...
Florence is CIO of a multibillion-dollar home office for the Nelson family. She is discussing the revision of the governing investment policy statement to permit the investment in distressed securities. Susan Nelson represents the family in policy matters. Susan Nelson states: ‘‘Distressed securities sound like a very-high-risk investment strategy because the strategy focuses on companies with high risk of bankruptcy. Is that why few investors choose to invest in distressed securities? What are the origins of distressed securities, and how...
Assume the Ricardian model where the marginal product of labor in the home country is 3 in the cheese industry and 2 in the wine industry.
1)Assume the Ricardian model where the marginal product of labor in the home country is 3 in the cheese industry and 2 in the wine industry. The home country has 10 workers. The relative price of wine (Pw/Pc) is 2 after trade. After trade the home country consumes 12 units of wine. Use this information to calculatea. The relative price of wine before tradeb. The slope of the production possibilities frontier, where wine is on the horizontal axis and cheese...
Business information on styrene, such as major producers, trends in worldwide production capacity, recent industry news,...
Business information on styrene, such as major producers, trends in worldwide production capacity, recent industry news, new projects, typical plant capacities, and historic and current prices, and technology developments. Please include at least two recent business sources and one recent research / technology development article, with recent meaning, say, 2017–2020.
Acme Manufacturing produces corrugated board containers that the nearby wine industry uses to package wine in...
Acme Manufacturing produces corrugated board containers that the nearby wine industry uses to package wine in bulk. Acme buys kraft paper by the ton, converts it to heavy-duty paperboard on its corrugator, and then cuts and glues it into folding boxes. The boxes are opened and filled with a plastic liner and then with the wine. Many other corrugated board converters are in the area, and competition is strong. Acme is eager to keep its costs under control. The company...
The US dollar has been used for decades as a medium of exchange, worldwide. Before the...
The US dollar has been used for decades as a medium of exchange, worldwide. Before the US dollar was so highly regarded, international commerce used the British pound sterling. What causes world powers to choose to trade in one specific currency? What does that mean for the world economy? Why do the standard currencies change? Do you see any changes in currency coming? PLEASE ANSWER IN YOUR OWN WORDS NO PLAGIARISM!!!!!!
Elizabeth Burke wants to develop a model to more effectively plan production for the next year....
Elizabeth Burke wants to develop a model to more effectively plan production for the next year. Currently, PLE has a planned capacity of producing 9100 mowers each month, which is approximately the average monthly demand over the previous year. However, looking at the unit sales figure for the previous year, she observed that the demand for mowers has a seasonal fluctuation, so with this level production strategy there is over-production in some months, resulting in excess inventory buildup and underproduction...
Gotohell buys and sells regularly with customers worldwide. Its home currency is the dollar. The firm...
Gotohell buys and sells regularly with customers worldwide. Its home currency is the dollar. The firm expects to receive €1.2 million in 6 months’ time from a customer abroad. Current exchange rates in the home country of Gotohell are: Exchange rate : Euros Per dollar Spot : 4.1780-4.2080 6-month forward : 4.2302- 4.2606 12-month forward : 4.2825-4.3132 Required: a) Calculate the rate of forward discount of the euro on the 6-month forward exchange rate both for buying and selling rate....
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT