A fine red wine Camille manages a winery that is known for its fine red wine of the “Vinho Verde” variant. Wine-tasting experts, or sommeliers, come every year to rate the wine quality of each of her wines using a numerical score that ranges from 1 (low quality) to 7 (high quality). To improve her understanding of the sommeliers’ wine rating system, Camille collected data by hiring scientists to take physicochemical tests on each of her wines. Using the scientific data, she runs a regression of wine quality on the amount of fixed acidity, residual sugar, density, and alcohol content. Below is her R regression output.

8 kL = 8000 L  

Based on the correlation matrix, is multicollinearity likely an issue?

289 mL = 28.9 cL

Peter returned a p-value of 0.025 from the appropriate test for heteroscedasticity. What should he conclude at the 0.05 level?

Making food the world loves Jeff Harmening, the CEO of General Mills, strives to achieve their slogan of “making food the world loves.” He first collected data on his dependent variable of consumer ratings from 0 (low) to 100 (high) for all cereal brands. He then created an indicator variable generalmills to compare cereals produced by General Mills to cereals produced by competitors. He also collected data on the nutrition of each, including the amount of calories, fiber, and sugars. Below is the correlation matrix of the variables:

Calculate a point estimate of the price if max resolution=1920 pixels (1.92 thousand pixels) and min resolution=480 pixels (0.48 thousand pixels).

0.065 L =65 cL.

Jeff then ran the following regression of ratings on the indicator of generalmills and the nutritional variables of calories, fiber, and sugars:

Calculate a 95% prediction interval for the wine quality in a new batch of Camille’s red wine with a fixed acidity of 10, a residual sugar of 2.5, a density of .995, and an alcohol content of 11.