Estimate the wine equation through the given period

Reference no: EM132128483

Question: On March 4, 1990, the New York Times reported "Wine Equation Puts Some Noses Out of Joint." In this problem you will estimate an equation that predicts the quality of wine. Typically wine is rated long before it is ready to drink by having an "expert" taste the premature wine from the barrel. Their pronouncements on the quality of the wine help determine the wholesale price. Often it will take many years before the wine can be ranked with any precision. Professor Ashenfelter, however, has devised a regression model that predicts wine quality by incorporating as explanatory variables the weather that prevailed when the wine was grown. The belief that weather affects wine quality is widespread, but Ashenfelter offered an explicit equation to assess the quality of red wine from the Bordeaux region of France. The data you will use contains four variables: an index of auction prices for wine that has matured (measured in logs), the level of winter rain (October through March-measured in millimeters), average temperature during the growing season (April through September-measured in degrees celsius), and the level of harvest rain (August through September-measured in millimeters). These data are available in the attached file below.

a. Estimate the wine equation through the period 1987. Interpret the coefficients.

b. What proportion of the variation in wine prices does the model explain?

c. Explain how you would use this model to predict the quality of wines that are not yet mature.

Information related to above question is enclosed below:

Attachment:- Data.rar

Reference no: EM132128483

Questions Cloud

Define the role of ethics and social responsibility : The purpose of this assignment is to help students understand the influence that ethics and social responsibilities have on the strategic planning process.

Pricing-creating-capturing value and game theory : Capitalism is an economic system in which the major portion of production and distribution is in private hands,

What is a good analogy of subnetting : What is a good analogy of Subnetting? What's a break down of how it is used within a company?

Explaining the seven issues that have to be kept track : Create a 250-word summary explaining the 7 issues that have to be kept track of during a comprehensive cash flow estimation process.

Estimate the wine equation through the given period : On March 4, 1990, the New York Times reported "Wine Equation Puts Some Noses Out of Joint." In this problem you will estimate an equation that predicts.

Read a integer number which has 2 digits after the decimal : Read a integer number which has 2 digits after the decimal point. The number also has at least 6 digits the decimal point.

Identify opec member nations influence and maintain price : Identify OPEC member nations influence and maintain the price of oil through the control of production levels

What health condition did the researchers study : What factors did the researchers investigate to determine an association with the outcome listed above? There may be more than one.

Estimate a model relating score to driving distance : The data found in teh attached file below, contains information from the year-2000 Professional Golfers' Association tour. It includes the players' names.

User Account

All Pages