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Step 1: Understanding The Model: Project: Diamond Prices

The document provides instructions for a project analyzing diamond prices. It asks the reader to: 1) Answer questions to demonstrate understanding of the model used to predict diamond prices based on carat weight, cut, and clarity. 2) Create visualizations plotting actual diamond prices against predicted prices to evaluate the model's accuracy. 3) Make a recommendation for what price a jewelry company should bid based on comparing actual and predicted prices.

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anubhav582
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39 views1 page

Step 1: Understanding The Model: Project: Diamond Prices

The document provides instructions for a project analyzing diamond prices. It asks the reader to: 1) Answer questions to demonstrate understanding of the model used to predict diamond prices based on carat weight, cut, and clarity. 2) Create visualizations plotting actual diamond prices against predicted prices to evaluate the model's accuracy. 3) Make a recommendation for what price a jewelry company should bid based on comparing actual and predicted prices.

Uploaded by

anubhav582
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Project: Diamond Prices

Complete each section. When you are ready, save your file as a PDF document and submit it
in your classroom.

Step 1: Understanding the Model


Answer the following questions:

1. According to the model, if a diamond is 1 carat heavier than another with the
same cut, how much more should I expect to pay? Why?

2. If you were interested in a 1.5 carat diamond with a Very Good cut (represented
by a 3 in the model) and a VS2 clarity rating (represented by a 5 in the model),
how much would the model predict you should pay for it?

Step 2: Visualize the Data


Make sure to plot and include the visualizations in this report. For example, you can create
graphs in Excel and copy and paste the graphs into this Word document.

1. Plot 1 - Plot the data for the diamonds in the database, with carat on the x-axis
and price on the y-axis.
2. Plot 2 - Plot the data for the diamonds for which you are predicting prices with
carat on the x-axis and predicted price on the y-axis.
o Note: You can also plot both sets of data on the same chart in different
colors.
3. What strikes you about this comparison? After seeing this plot, do you feel
confident in the model’s ability to predict prices?

Step 3: Make a Recommendation


Answer the following questions:

1. What price do you recommend the jewelry company to bid? Please explain how
you arrived at that number.

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