Refer to the following data The table below shows the size o

Refer to the following data. The table below shows the size of some different diamonds and their costs in U.S. dollars.

Size (in carats)       Cost (in US $)

.12                          495

.17                          768

.20                          1105

.25                          1509

.28                          1996

.33                          2097

.35                          2409

1. Find the equation of the LSR line to predict cost from size.

y = 7244.184x - 322.587

y = 8460.729x - 572.034

y = 9021.362x - 698.923

y = 9946.271x - 403.002

2. Find the correlation

.924

.961

.978

.989

Solution

Excel used for analysis

Regression Analysis

r