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Author Question: What is the relationship between diamond price and carat size? 307 diamonds were sampled and a ... (Read 54 times)

Mr.Thesaxman

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on: Feb 14, 2020
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
Variables Coefficient Std Error T P
Constant -2298.36 158.531 -14.50 0.0000
Size 11598.9 230.111 50.41 0.0000

R-Squared 0.8925 Resid. Mean Square (MSE) 1248950
Adjusted R-Squared 0.8922 Standard Deviation 1117.56

The model was then used to create 95% confidence and prediction intervals for y and for E(Y) when the carat size of the diamond was 1 carat. The results are shown here:

95% confidence interval for E(Y): ($9091.60, $9509.40)
95% prediction interval for Y: ($7091.50, $11,510.00)

Which of the following interpretations is correct if you want to use the model to estimate E(Y) for all 1-carat diamonds?
◦ We are 95% confident that the average price of all 1-carat diamonds will fall between $7091.50 and $11,510.00.
◦ We are 95% confident that the price of a 1-carat diamond will fall between $9091.60 and $9509.40.
◦ We are 95% confident that the price of a 1-carat diamond will fall between $7091.50 and $11,510.00.
◦ We are 95% confident that the average price of all 1-carat diamonds will fall between $9091.60 and $9509.40.
Statistics ¦ McClave, Sincich, Tamarack ¦ 12th Edition
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Marked as best answer by Mr.Thesaxman on Feb 14, 2020

Juro

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Reply #1 on: Feb 14, 2020
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Mr.Thesaxman

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Reply 2 on: Feb 14, 2020
Great answer, keep it coming :)

yeungji

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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