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

question 3

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?
$\begin{array}{|l|l|l|l|l|l|l|}\hline \text { Weight } & 0.3 & 0.4 & 0.5 & 0.5 & 1.0 & 0.7 \\\hline \text { Price } & 510 & 1151 & 1343 & 1410 & 5669 & 2277 \\\hline\end{array}$

---

Definitions:

Detrimentally Changed

Refers to a negative alteration in circumstances or conditions that adversely affects someone or something.

Reasonable Belief

A person's honest conviction or acceptance that a fact or condition is true, based on factual evidence or credible information.

Authority of the Principal

The legal right or power given to an agent to act on behalf of a principal in business transactions.

Estoppel

A legal principle that prevents a person from arguing something contrary to a claim or a fact that has been previously established as the truth.