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 Napa.

**Step 1 Define my Hypothesis**

Ho: There is no correlation between WS Score and Price for Napa Wines

H1: there is a correlation between WS Score and price for Napa wines

**Step 2 run the regression Analysis**

The regression equation is **Napa Price = - 2040 + 23.5 Napa Score**

Predictor Coef StDev T P

Constant -2040.3 318.8 -6.40 0.000

Napa Sco 23.488 3.557 6.60 **0.000 **

S = 33.21 R-Sq = 57.7% **R-Sq(adj) = 56.4%Analysis of Variance**

Source DF SS MS F P

Regression 1 48111 48111 43.61

**0.000**

Residual Error 32 35301 1103

Total 33 83412

Unusual Observations

Obs Napa Sco Napa Pri Fit StDev Fit Residual St Resid

21 92.5 68.33 132.36 11.72 -64.03 -2.06R

29 94.4 275.00 176.99 17.92 98.01 3.51RX

R denotes an observation with a large standardized residual

X denotes an observation whose X value gives it large influence.

**Step 3 Explain the results****We Reject the null hypothesis.**

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

The R-sq(adj) value is high, which tells us that the regression equation explains a high percentage of the variation in the process (close 60%).

**Step 4 Conclusion**

It looks like that score is a strong predictor of a price for Napa wines.**Note:**"**Correlation does not imply causation**"