A diamond is one of the best known and most sought after gemstones. .Polished diamonds prices vary widely depending on carat, color , clarity and cut sometimes referred as the 4Cs. The industry is now more distrubuted resulting in a higher percentage of diamond sales taking place in the form of auctions and other forms of open-market sales.
Literature Diamond • It has been used as decorative and cutting works. • The diamond value manly depends on the 4’C i.e carat, clarity ,cut, color. Carat • It refers to the unique unit of weight measurement used exclusively to weigh gems and diamonds. • Carat weight is often confused with visual size even though it is actually a measurement of weight. Depending on the shape and type of gemstone being weighed, the weight will visually show itself differently. Clarity • Diamonds clarity is the assessement of small imperfections on gthe surfaces and internally . • The surfaces flawes are called blemishes, and internal defects are know as inclusions. • These tiny natural blemishes and inclusions are microscopic and do not affect a diamonds beauty in any way . • Diamonds with least and smallest inclusion receive the highest clarity grades there are 5 gradeing factors in clarity i.e size, number, position, nature and color and relief . Types of clarity defined are: Flawless Diamonds • FL &IF Diamonds(Rare Finds)Slightly Included Diamonds • VVS Diamonds(Excellent Quality) • VS & SI Diamonds(Best Value & Most Popular) Cut • Diamond's cut refers to its facets and angles; their number, proportions, and symmetry, which affect how light reflects out of the stone. • The grade for a diamond's cut ranges from excellent, reflecting as much light as possible, to poor, with much light lost out of the sides or bottom of the diamond. • A skillfully cut diamond will reflect as much light as possible out of the table (top face) of the crystal and thus appear fiery and brilliant. Color • The Color of a Diamond refers to the Tone and Saturation of Color, or the Depth of Color in a Diamond. • The Color of a Diamond can Range from Colorless to a Yellow or a Faint Brownish Colored hue. Colorless Diamonds are Rarer and more Valuable because they appear Whiter and Brighter.
Hypothesis • The price value might defer due to variation in cut, clarity and carat. • The price would have no effect on variation in color. • The table(avg percentage of width) of diamond doesn’t effect with other parameters. • The depth may vary with respect to clarity and hence vary with price. • The carat value has the most significant role
Data Collection • Carat : Carat weight of the Diamond. • Cut : Describe cut quality of the diamond. Quality in increasing order Fair, Good, Very Good, Premium, Ideal . • Color : Color of the Diamond. • Clarity : Diamond Clarity refers to the absence of the Inclusions and Blemishes. (In order from Best to Worst, FL = flawless, I3= level 3 inclusions) FL, IF, VVS1, VVS2, VS1, VS2, SI1, SI2, I1, I2, I3 • Depth : The Height of a Diamond, measured from the Culet to the table, divided by its average Girdle Diameter. • Table : The Width of the Diamond's Table expressed as a Percentage of its Average Diameter. • Price : the Price of the Diamond. • X : Length of the Diamond in mm. • Y : Width of the Diamond in mm. • Z : Height of the Diamond in mm.
Objective To analyze the price of the diamond dataset with respect to parameters such as carat, cut, clarity, color, depth and volume of diamond. It also determines the importance of those parameters and variations considering various factor.
Conclusion
With the onset of the project the parameter carat was considered the most essential phenomena in contributing to the price.This hypothesis proved to be correct due to the variation of the R sq value(decrease) in dataset that included and not included carat for its analysis. Furthermore we also stated that the cut, clarity plays a vital role in the pricing. This was proved wrong due to the constant value of R sq. Apart from this we concluded that the colour does not play a factor in the pricing thus proving our stated hypothesis correct. The last possibility that was considered was the non-contribution of table towards the value. This hypothesis was proved wrong due to variation in the R sq value in its presence and absence.