Professor Proposes
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Contents:
Case Overview
Characteristics of a Diamond * The Four C’s (Color, Carat, Cut and Clarity) * Symmetry and Polish * Certification
Pricing
Data Set
Regression Analysis * Full Level – Level type Model * Partial Level – Level Model (Carat) * Partial Level – Level Model (Carat*Color) * Ln – Ln Model * Ln – Level Model * Level – Ln Model
Comparison
Appendix
Case Overview
This paper tries to assist a professor in making an educated decision regarding the diamond he should buy. He feels that his girlfriend has already hinted about marriage three times, and the time has come to finally do something about it. So, he decides to propose to her and sets aside $2000 to $4000 for a diamond ring. At the store, the professor finds out that picking the right diamond is not a straightforward task.
Characteristics of a Diamond
The value of a diamond is determined by a lot of characteristics, out of which some of the most important ones are listed below:
Color
Diamonds vary on a scale from colorless to yellow, with the yellower shades being the cheapest and the colorless ones being the most valuable. Other colors are extremely rare and very exorbitant.
Carat
This is the unit of measurement for diamonds, where 1 Carat equals 0.2 grams. Higher Carat diamonds are more rare and as a result more valuable. For instance, a two carat diamond will be more expensive than two one carat diamonds combined.
Cut
Cut is the main determinant of reflective properties and it refers to the shape and
Contents:
Case Overview
Characteristics of a Diamond * The Four C’s (Color, Carat, Cut and Clarity) * Symmetry and Polish * Certification
Pricing
Data Set
Regression Analysis * Full Level – Level type Model * Partial Level – Level Model (Carat) * Partial Level – Level Model (Carat*Color) * Ln – Ln Model * Ln – Level Model * Level – Ln Model
Comparison
Appendix
Case Overview
This paper tries to assist a professor in making an educated decision regarding the diamond he should buy. He feels that his girlfriend has already hinted about marriage three times, and the time has come to finally do something about it. So, he decides to propose to her and sets aside $2000 to $4000 for a diamond ring. At the store, the professor finds out that picking the right diamond is not a straightforward task.
Characteristics of a Diamond
The value of a diamond is determined by a lot of characteristics, out of which some of the most important ones are listed below:
Color
Diamonds vary on a scale from colorless to yellow, with the yellower shades being the cheapest and the colorless ones being the most valuable. Other colors are extremely rare and very exorbitant.
Carat
This is the unit of measurement for diamonds, where 1 Carat equals 0.2 grams. Higher Carat diamonds are more rare and as a result more valuable. For instance, a two carat diamond will be more expensive than two one carat diamonds combined.
Cut
Cut is the main determinant of reflective properties and it refers to the shape and