An article in the Journal of Statistics Education reported the price of diamonds of different sizes in Singapore dollars
(SGD). The following table contains a data set that is consistent with this data, adjusted to US dollars in 2004:

\begin{array}{l}\begin{array} { | c | c | } \hline \text { 2004 US S } & \text { Carat } \\\hline 494.82 & 0.12 \\\hline 768.03 & 0.17 \\\hline 1105.03 & 0.20 \\\hline 1508.88 & 0.25 \\\hline 1826.18 & 0.28 \\\hline 2096.89 & 0.33 \\\hline\end{array}\quad\begin{array} { | c | c | } \hline \text { 2004 US S } & \text { Carat } \\\hline 688.24 & 0.15 \\\hline 944.90 & 0.18 \\\hline 1071.75 & 0.21 \\\hline 1504.44 & 0.26 \\\hline 1908.28 & 0.29 \\\hline 2409.76 & 0.35 \\\hline\end{array}\quad\begin{array} { | c | c | } \hline \text { 2004 US S } & \text { Carat } \\\hline 748.10 & 0.16 \\\hline 1076.18 & 0.19 \\\hline 1289.20 & 0.23 \\\hline 1597.63 & 0.27 \\\hline 2038.09 & 0.32 \\\hline & \\\hline\end{array}\end{array}

-Would it be better for a customer buying a diamond to have a negative residual or a positive residual from this model? Explain.

The Model str^=12+20dia\sqrt { \hat { s t r } } = 12 + 20 \mathrm { dia }str^​=12+20dia

Multiple Choice

Correct Answer:VerifiedUnlock this answer nowGet Access to more Verified Answers free of chargeAccess For Free

The Model $\sqrt { \hat { s t r } } = 12 + 20 \mathrm { dia }$

Correct Answer:
Verified
Unlock this answer now
Get Access to more Verified Answers free of charge