You're surprised to learn that instead of ~$100, a 0.30 carat costs ~$800 carats. Which explanation would make sense? a The linear regression is not accurate at predicting the cost of diamonds below 0.40 carats. b There is a fixed cost associated with procuring the diamond and offering it for sale, meaning that small diamonds have a relatively high price. c The diamond is very high quality as measured by other metrics (e.g., cut, clarity, color). d All of the above.

Q: 40 -50-

A:

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