In this document we will try to understand how different factors may influence the price of a diamond. To answer that we use the diamonds dataset containing the prices and other attributes of almost 54,000 diamonds. To make interpretation easier we choose a random sample of one thousand entries from the original dataset.

We plot weight of the diamond (carat) vs. price in US dollars (price) along the x/y axes. We also introduce another dimension to visualize the quality of the cut (cut having the following values: Fair, Good, Very Good, Premium, Ideal) as colors in the plot.

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summary(cars)

##      speed           dist       
##  Min.   : 4.0   Min.   :  2.00  
##  1st Qu.:12.0   1st Qu.: 26.00  
##  Median :15.0   Median : 36.00  
##  Mean   :15.4   Mean   : 42.98  
##  3rd Qu.:19.0   3rd Qu.: 56.00  
##  Max.   :25.0   Max.   :120.00