What Is the Relationship Between Diamond Price and Carat Size

Multiple Choice

What is the relationship between diamond price and carat size? 307 diamonds were sampled (ranging in size from 0.18 to 1.1 carats) 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 Interpret the estimated y-intercept of the regression line.

A) When a diamond is 0 carats in size, we estimate the price of the diamond to be $11,598.90.
B) When a diamond is 0 carats in size, we estimate the price of the diamond to be $2298.36.
C) When a diamond is 11598.9 carats in size, we estimate the price of the diamond to be $2298.36.
D) No practical interpretation of the y-intercept exists since a diamond of 0 carats cannot exist and falls outside the range of the carat sizes sampled.