Chapter PII, Problem 3RE

(a)

To determine

To explain does it appear that vineyard in business longer get higher prices for their wines.

Answer to Problem 3RE

No, it does not appear that vineyard in business longer get higher prices for their wines.

Explanation of Solution

The scatterplot and the regression analysis for case prices from vineyard in the finger lakes of New York are given in the question. It is also given that,

  $\begin{array}{l}\text{Constant}=92.7650\\ \text{Age}=0.567284\\ R^2=2.7\%\\ n=36\end{array}$

Thus, it does not appear that vineyard in business longer get higher prices for their wines because the relationship does not seem to be linear by looking at the scatterplot as the points in the scatterplot is scattered a lot in one area and not forming any pattern.

(b)

To determine

To explain what does this analysis tell us about vineyards in the rest of the world.

Explanation of Solution

The scatterplot and the regression analysis for case prices from vineyard in the finger lakes of New York are given in the question. It is also given that,

  $\begin{array}{l}\text{Constant}=92.7650\\ \text{Age}=0.567284\\ R^2=2.7\%\\ n=36\end{array}$

Thus, we can say that by looking at the analysis that this analysis does not tell us about vineyards in the rest of the world because the data is strictly for the Finger Lakes region of New York states and also $R^2=2.7\%$ which means that this model explains only $2.7\%$ of the variables which is very less.

(c)

To determine

To write the regression line.

Answer to Problem 3RE

   .

Explanation of Solution

The scatterplot and the regression analysis for case prices from vineyard in the finger lakes of New York are given in the question. It is also given that,

  $\begin{array}{l}\text{Constant}=92.7650\\ \text{Age}=0.567284\\ R^2=2.7\%\\ n=36\end{array}$

Thus, the regression line is equated as,

  

(d)

To determine

To explain why that equation is essentially useless.

Explanation of Solution

The scatterplot and the regression analysis for case prices from vineyard in the finger lakes of New York are given in the question. It is also given that,

  $\begin{array}{l}\text{Constant}=92.7650\\ \text{Age}=0.567284\\ R^2=2.7\%\\ n=36\end{array}$

Thus, the equation is essentially useless because the scatterplot is not linear at all and only $2.7\%$ of the variability in case price is accounted for by age.