This is an introduction to my presentation, I will be using the Diamonds data set.

In the diamonds data set

• The dependent variable is price

• The prices range from 323 - 18823 dollars

• Price depends on three factors, the cut, the color, and the carat

summary(diamonds)

##      carat               cut        color        clarity     
##  Min.   :0.2000   Fair     : 1610   D: 6775   SI1    :13065  
##  1st Qu.:0.4000   Good     : 4906   E: 9797   VS2    :12258  
##  Median :0.7000   Very Good:12082   F: 9542   SI2    : 9194  
##  Mean   :0.7979   Premium  :13791   G:11292   VS1    : 8171  
##  3rd Qu.:1.0400   Ideal    :21551   H: 8304   VVS2   : 5066  
##  Max.   :5.0100                     I: 5422   VVS1   : 3655  
##                                     J: 2808   (Other): 2531  
##      depth           table           price             x         
##  Min.   :43.00   Min.   :43.00   Min.   :  326   Min.   : 0.000  
##  1st Qu.:61.00   1st Qu.:56.00   1st Qu.:  950   1st Qu.: 4.710  
##  Median :61.80   Median :57.00   Median : 2401   Median : 5.700  
##  Mean   :61.75   Mean   :57.46   Mean   : 3933   Mean   : 5.731  
##  3rd Qu.:62.50   3rd Qu.:59.00   3rd Qu.: 5324   3rd Qu.: 6.540  
##  Max.   :79.00   Max.   :95.00   Max.   :18823   Max.   :10.740  
##                                                                  
##        y                z         
##  Min.   : 0.000   Min.   : 0.000  
##  1st Qu.: 4.720   1st Qu.: 2.910  
##  Median : 5.710   Median : 3.530  
##  Mean   : 5.735   Mean   : 3.539  
##  3rd Qu.: 6.540   3rd Qu.: 4.040  
##  Max.   :58.900   Max.   :31.800  
## 

According to the scatterplot

• The relationship betwen price and carat is a strong positive correlation

• Mostly because amount of carats influence price, like we hear in movies where someone has a 24 carat diamond

Right round baby right round