This hypothesis testing is to try to understand if there is correlation between the average scores given by wine spectator and the average prices for wineries in Sonoma.

**Step 1: Define the Hypothesis**

Ho: There is no correlation between WS score and Price for Sonoma wines

H1: there is a correlation between WS score and price for Sonoma wines

**Step 2 run the regression Analysis**

The regression equation is

**Sonoma Price = - 389 + 4.78 Sonoma Score**

Predictor Coef StDev T P

Constant -388.5 106.2 -3.66 0.001

Sonoma S 4.783 1.185 4.04 ** 0.000**

S = 9.461 R-Sq = 32.4% R-Sq(adj) = **30.4%**

Analysis of Variance

Source DF SS MS F P

Regression 1 1458.3 1458.3 16.29 ** 0.000**

Residual Error 34 3043.3 89.5

Total 35 4501.6

**Step 3 Explain the results**

**We reject the null hypothesis.**

The P-value for Score is <.05 which leads us to conclude that **score is a good predictor of Price **and there is correlation between Score and Price for Sonoma wines.

The R-sq(adj) value is low, which tells us that the regression equation can only explains about 30% of the variation, we therefore conclude that there are other factors that can explain variation.

**Step 4 Conclusion**

There is a correlation between scores and prices other factors are at play.

**Note:**"**Correlation does not imply causation**"

Max.