What Is the Relationship Between Diamond Price and Carat Size $y =$

Multiple Choice

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

$\begin{array}{l}\text { Predictor }\\\begin{array}{lcccll}\text { Variables } & \text { Coefficient } & \text { Std Error } & \text { T } & {\text { P }} \\\text { Constant } & -2298.36 & 158.531 & & -14.50 & 0.0000 \\\text { Size } & 11598.9 & 230.111 & 50.41 & 0.0000\end{array}\end{array}$

$\begin{array}{lccc}\text { R-Squared } & 0.8925 & \text { Resid. Mean Square (MSE) } & 1248950 \\\text { Adjusted R-Squared } & 0.8922 & \text { Standard Deviation } & 1117.56\end{array}$


Interpret the estimated slope of the regression line.

A) For every $\$ 1$ decrease in the price of the diamond, we estimate that the size of the diamond will increase by $11,598.9$ carats.
B) For every 1-carat increase in the size of a diamond, we estimate that the price of the diamond will increase by $\$ 11,598.90$ .
C) For every 2298.36-carat decrease in the size of a diamond, we estimate that the price of the diamond will increase by $\$ 11,598.90$ .
D) For every 1-carat increase in the size of a diamond, we estimate that the price of the diamond will decrease by $\$ 2298.36$ .