What Is the Relationship Between Diamond Price and Carat Size

question 64

Multiple Choice

What is the relationship between diamond price and carat size? 307 diamonds were sampled and a straight-line relationship was hypothesized between y = diamond price (in dollars) and x = size of the diamond (in carats) . The simple linear regression for the analysis is shown below: Least Squares Linear Regression of PRICE Interpret the standard deviation of the regression model.

• A) We can explain 89.25% of the variation in the sampled diamond prices around their mean using the size of the diamond in a linear model.
• B) We expect most of the sampled diamond prices to fall within $1117.56 of their least squares predicted values.
• C) We expect most of the sampled diamond prices to fall within $2235.12 of their least squares predicted values.
• D) For every 1-carat increase in the size of a diamond, we estimate that the price of the diamond will increase by $1117.56.

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