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What Is the Relationship Between Diamond Price and Carat Size 89.25%89.25 \%

Question 43

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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
 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    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)  For every 1-carat increase in the size of a diamond, we estimate that the price of the diamond will increase by  \$ 1117.56 . C)  We expect most of the sampled diamond prices to fall within  \$ 1117.56  of their least squares predicted values. D)  We expect most of the sampled diamond prices to fall within  \$ 2235.12  of their least squares predicted values.

Interpret the standard deviation of the regression model.


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

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