Mathematics, 04.08.2020 16:01 drastipatel18
Linear regression model describing the relationship between the carat weight and price of very high quality diamonds is summarized below.
A diamond seller lists a very high quality diamond weighing 0.8 carats at a price of $10,999. Does this model over- or under-predict the price of this diamond? Select the option below that best summarizes the answer.
A. The model under-predicts the price of this diamond because the residual is positive.
B. The model over-predicts the price of this diamond because the residual is positive.
C. The model over-predicts the price of this diamond because the residual is negative.
D. We do not have enough information to answer this question.
E. The model under-predicts the price of this diamond because the residual is negative.
Answers: 1
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Linear regression model describing the relationship between the carat weight and price of very high...