B.G.J. &W. Diamond Company is one of the most prominent diamond cutters, importers, and designers of fine jewelry in the country. Members of B.G.J. &W are Diamond Graduates of the Gemological Institute of America and proud members of the World Federation of Diamond Bourses and the Diamond Dealers Club of New York. As such, B.G.J. &W Diamond Company offers an astonishing assortment of diamonds and an elite assemblage of jewelry motifs. The organization firmly believes that purchasing a diamond should be a fun and rewarding experience. Each customer is educated on the 4c’s of diamonds and has an opportunity to view various diamonds loosely before placing them in a setting. Additionally, all diamonds sold by B.G.J. &W. come with a written grading report from the Gemological Institute of America (GIA). In addition to exceptional pricing, consumers of B.G.J. &W Diamond Company receive diamonds that reflect only the best cut, color, clarity, and carat along with confidence that they are purchasing a quality piece of jewelry. Problem Statement & Purpose
Good research follows the scientific method and the purpose of business research is clearly defined, and vagueness rarely exists (Cooper & Schindler, 2011, pg. 13). Diamond characteristics such as, clarity, color, and carat are essential components of a diamond. These features are determiners in the purchase of a diamond, which is why it is important for a gemologist to understand these variables. The purpose of this study is to conduct an investigation to determine whether there is any relationship between the dependent variable (price) and the independent variables (carat, clarity, and color).
The null hypothesis usually represents the “status quo,” that is accepted unless the data provides convincing evidence that it is false, and the alternative hypothesis is the assumption that is accepted only if the data provides convincing proof of its truth (McClave, Benson, Sincich, 2011, pg. 321) Hypothesis #1(H1), Team A postulates that clarity affects the price of diamonds. Research question #1(RQ1), Does clarity have any effect on the price of diamonds? Hypothesis #2(H2), Team A postulates that color affects the price of diamonds. Research question #2(RQ2), Does color have any effect on the price of diamonds? Hypothesis #3(H3), Team A postulates that carat size affects the price of diamonds. Research question #3(RQ3), Does carat size have any effect on the price of diamonds? The empirical model that reflects these hypotheses is Price=. Descriptive Statistics
In business statistics, two different processes (describing sets of data and drawing conclusions) are used, and descriptive statistics consist of numerical and graphical methods (McClave, Benson, Sincich, 2011, pg. 3). Of the various elements in this research, the team can only conduct a quantitative analysis on two of the variables, the price and carat. This is because these two variables have quantifiable data unlike the other variables. The descriptive statistics analysis conducted on price shows a count of 308 items with a mean price of $5019.48, standard deviation of 3403.12, minimum price of $638, maximum amount of $16,008 resulting in a price range of $15,370. The descriptive statistics analysis conducted on carat shows a total count of 308 items with mean size of 0.6309, standard deviation of 0.2772, minimum carat size of 0.18, and maximum carat size of 1.1 resulting in a range of 0.92.
Based on the coded numerical data, Team A believes that the carat and the color will have a positive effect on the price of gold. Furthermore, other information included in Team A’s data collection plan, literature review, and correlation and regression analysis supports the team’s research goals and objectives, however. Additional research and analysis are necessary to determine a comprehensive outcome.