What Is the Relationship Between Diamond Price and Carat Size

question 17

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 Which of the following conclusions is correct when testing to determine if the size of the diamond is a useful positive linear predictor of the price of a diamond?

• A) There is insufficient evidence to indicate that the size of the diamond is a useful positive linear predictor of the price of a diamond when testing at α = 0.05.
• B) There is sufficient evidence to indicate that the size of the diamond is a useful positive linear predictor of the price of a diamond when testing at α = 0.05.
• C) There is insufficient evidence to indicate that the price of the diamond is a useful positive linear predictor of the size of a diamond when testing at α = 0.05.
• D) The sample size is too small to make any conclusions regarding the regression line.

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