Final Project

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School

University of Texas, Permian Basin *

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2342.783

Subject

Business

Date

Feb 20, 2024

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docx

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2

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Project Report Template BUSI 2342 Name: Student ID: Part I: The following analysis output as described in the handout. Exhibit 1 (10 points): Screenshot of your “Descriptive Statistics” results. Exhibit 2 (10 points): Screenshot of your “Regression” results. Part II: Answers to the following questions. Question 1 (20 points) : Based on the “Descriptive Statistics” results, what’s the mean value for ‘VS1’ diamonds’ price? and what’s the mean value for ‘I1’ diamonds’ price? Answer: mean value for ‘VS1’ diamonds’ price is $4,098.153. The mean value for the ‘I1’ diamonds’ price is $3,929.739.
Question 2 (20 points) : Based on the “Regression” results, what’s R-square of the model? What does it mean? Explain briefly. Answer: Based on the “Regression” results, the R-square of the model is 0.897644864. The R-square represents how accurately the model can explain the variations in y . The closer it is to 1, the higher the accuracy is. Question 3 (20 points) : Based on the “Regression” results, what’s the coefficient for the weight ‘carat’? How much change in price would be, averagely, if the weight of a VS1 diamond increase 0.1 carat? Answer: Based on the “Regression” results, the coefficient for the weight ‘carat’ is 8969.93. This is the increase of price per carat unit increase. This means that if the weight of a VS1 diamond were to increase by 0.1 carat, the price would increase by $896.99. Question 4 (20 points) : Based on the “Regression” results, what’s the 95% Confidence Interval for the coefficient of ‘carat’? Answer: Based on the “Regression” results, the top 95% confidence limit for the coefficient of ‘carat’ is 9158.077053 and the lower 95% confidence limit is 8781.779538.
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