What Is the Relationship Between Diamond Price and Carat Size $= 0.05$

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
Predictor


Interpret the coefficient of determination for the regression model.

A) There is sufficient evidence to indicate that the size of the diamond is a useful predictor of the price of a diamond when testing at alpha $= 0.05$ .
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 $\$ 2235.12$ of their least squares predicted values.
D) 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.