Econometric Project on Diamonds

Sacha Froelich ECO 4421.001 Project Diamond December 2, 2011 Research Questions: When viewing diamonds, how is price primed(p)? The typical response is the 4 Cs (carat, color, clarity, and cut). I want to put one over how accurate and important the carat, color, and clarity argon in determining price. Ideally, I wanted to tally into bring in the reliability of different Gemmological grading but as I couldnt find entropy that allowed for direct comparison utilise the same group of diamonds, I had to go with this circumscribed prodigy of diamond prices instead. Dataset Description: N = 180 observations Y = outlay, in dollars X1 = karat, weight/size of a diamond with 1 Carat = 0.2 grams; my range being 0.5 to 1.01 Carats X2 = Color, which will be still abject down into: D=1, E=2, F=3, G=4, H=5, and I=6 X3 = Clarity, again broken into: 1IF=18, 2VVS1=19, 3VVS2=21, 4VS1=22, and 5VS2=23 (these values were railroad car generated by STATA as 1-6 were already tak en (Im crack from my Clarity) it sooner gave me 7-11 but as I had to tweak the articulate in which they appeared because it kept fetching it alphabetically which threw off my scale, thitherfrom the 1IF vs.

IF each new batch gave a numerical subsidisation that went further down the pike which is how I/STATA arrived at the poem given) The data was used as digress of Statistix 9.0 software when I took Stats II in Spring of 2011 and originally was published in Singapores Business generation edition on February 18, 2000. I have taken a portion of it here for my use. I attempted to find to a greater extent current data but couldnt locate anything tha! t was free. work through: http://www.amstat.org/publications/jse/jse_data_archive.htm My stupefy: I would assume that the Multiple Linear reasoning backward (MLR) would be the best model. I do propose that Price is hooklike upon the Carat size, Color, and Clarity. I do expect to see a strong positive relationship between these variables and the price. Although, I do believe that Cut is also a decision making factor, it wint...If you want to get a full essay, crop it on our website: OrderCustomPaper.com

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