Predicting Diamond Price

I worked with two peers in STAT-225 Nonparametric Statistics to predict the prices of diamonds. We created a report of our findings and also gave a presentation.

Our report includes:

• Exploratory data analysis
• Three different regression models:
  1. Ordinary least squares (OLS)
  2. JHM (rank based)
  3. Generalized additive model (GAM)
• Assessment of model fit
• Proposed model (the best model)
• Discussion

Findings

Our proposed model is a GAM that predicts diamond price (actually the log of diamond price) using depth, length, width, carat, color, and clarity (with a smoothing spline on length and width).