The Cullinan I diamond (the “Star of Africa”) owned by the Queen of England is, at 530.20 carats, the largest D-colour cut diamond in the world. It’s mounted at the head of the sceptre with the cross in the British crown jewels. It has an estimated value of about \($400\) million. When we restrict our analysis of the diamonds we saw in For Example: “Diamond prices” to D-colour diamonds, the regression model of Price on Carat Weight is

QUESTION:

What does this model predict for the Price of the Cullinan I diamond? Is the estimate of \($400\) million consistent with this model? Do you think this model should be relied on to establish prices for large diamonds?

Transcribed Image Text:

Price = -2129.148081.12 CaratWt.