Course Solutions Uncategorized (Solved) : 45pt Revisit Example 36 Chapter 3 S Lecture Note Shows Relationship Price Diamond Carat Ca Q33298709 . . . .

(Solved) : 45pt Revisit Example 36 Chapter 3 S Lecture Note Shows Relationship Price Diamond Carat Ca Q33298709 . . . .

 

(45pt) We revisit Example 3.6 in Chapter 3s lecture note, which shows the relationship between the price of a diamond and its carat. Carat (C) 0.25 0.3 0.35 0.4 0.45 0.5 0.55 0.6 Price (P)Carat (C) Price (P) 16896 22602 29775 40022 71031 2121734 3 391770 4562342 0.7 0.8 0.9 3110 3786 4685 5966 7718 10478 13156 13877 1.5 Now we assume that the relationship is of the form P- aoeaic. a) (10pt) Discuss how to estimate ao and a1 using linear regression technique. b) (10pt) Using the method discussed in a), by Excel, estimate ao and a1, determine 

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