Effect of Chemical Properties on Red Wine Quality

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Effect of Chemical Properties on Red Wine Quality

Financial Econometrics

GFGB 6008

Section 004

Group: 4

Yiyu Chen

Ziting Dong

Hongyi Shu

Ailin Yin

Table of Contents

Introduction        

Data Analysis        

Test for Jointly Significant        

OLS Assumptions        

Further Analysis of Results        

Conclusions        

Appendix I SAS Code        

Introduction

Nowadays, with the growing living standard people have, wine consumption become a great aspect in daily consumption, from which red wine owns a large proportion. The price of red wine depends on a rather abstract concept of wine appreciation by different tasters. And another key factor in red wine certification and quality assessment is physicochemical test which takes into account factors like acidity, pH level, and etc. For the red wine market, it would be of interest if human quality of tasting can be related to the chemical properties of red wine so that certification and quality assessment and assurance process is more controlled. Also, by understand this problem we can be more clear about the consumption of red wine people carry out.

So, how do chemical properties exactly influence red wine quality?

We have learnt that there are already some people studied this problem. In a research article about wine quality by Penn State University (2015), one specific question was addressed to guide the research. Would laboratory-based physicochemical test factors like, acidity, residual sugar and density affect the quality of wine? Since the wine taster’s appreciation varies in a high degree, analyzing the relationship between wine’s quality and certain lab-based physiochemical factors appears more practical and worth discussing. The focus of the research was the regression relationship between quality and other 11 variables that differs the wine in physicochemical aspect. First, research group applied multiple regression method, which eliminates the density, citric acid, fixed acidity and total sulfur dioxide factors, to interpret the relationships among the variables. Second, in order to test if a polynomial relationship exists in the model, an alternative model was built and resulted in an improvement of R-square to 31%. In the end, the research group utilized a random forecast to back test the consistence of the model. The conclusion of the research shows no strong relationship between wine quality and chemical properties. This might because of the sample groups are not well separated. Further sample data might be helpful in improving the research result.