What Is the Relationship Between Diamond Price and Carat Size $\alpha = 0.05$

question 102

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
Predictor


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 price of the diamond is a useful positive linear predictor of the size of a diamond when testing at \(\alpha = 0.05\).
• B) 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 \(\alpha = 0.05\).
• C) The sample size is too small to make any conclusions regarding the regression line.
• D) 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 \(\alpha = 0.05\).

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Definitions:

Inflation

The pace at which average prices for products and services climb, reducing the value of money.

U.S. Exports

Products and services created in the United States and exported to foreign nations.

International Tourism

Traveling to foreign countries for leisure, business or other purposes, which contributes to the economic and cultural exchange between nations.

Foreign Capital Inflow

The entry of capital from one country into another, where it is used to purchase assets or invest in business activities, often enhancing economic development.