The Table Below Lists Weights (Carats) and Prices (Dollars) for Randomly

question 15

Essay

The table below lists weights (carats) and prices (dollars) for randomly selected diamonds. Find the regression equation, letting the weight be the predictor variable. Find the best predicted price for a diamond with a weight of 1.50 carats. What is wrong with predicting the price of a 1.50 -carat diamond?
$\begin{array} { | l | l | l | l | l | l | l | } \hline \text { Weight } & 0.3 & 0.4 & 0.5 & 0.5 & 1.0 & 0.7 \\\hline \text { Price } & 510 & 1151 & 1343 & 1410 & 5669 & 2277 \\\hline\end{array}$

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Definitions:

Adjusting Entries

Journal entries made at the end of an accounting period to update the accounts for accruals and deferrals that have not been recorded during the period.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, thus resetting the temporary accounts for the next period.

Retained Earnings

The accumulated net income of a company that is retained and reinvested in the business rather than paid out as dividends.

Service Revenue

Income earned by a company for providing services rather than selling physical goods.