Sarah Gets a Diamond

13 Pages Posted: 21 Oct 2008

See all articles by Phillip E. Pfeifer

Phillip E. Pfeifer

University of Virginia - Darden School of Business

Greg Mills

The Brenthurst Foundation

Abstract

Greg Mills describes his search for the perfect engagement ring which includes an analysis of the prices of 6,000 diamonds. An engineer, Greg hopes to impress Sarah Staggers by using regression to find an underpriced diamond. Students are asked to either select one of the 6,000 diamonds or provide point forecasts for prices of 3,142 diamonds in a hold-out sample. The instructor can use the actual prices of the held-out diamonds to evaluate student pricing models.

Excerpt

UVA-QA-0702

Rev. Dec. 15, 2009

SARAH GETS A DIAMOND

Greg Mills proposed to Sarah Staggers in the summer of 2006. This is the brief story of their relationship, the proposal, and Greg's search for the perfect diamond.

Background

After graduating with an engineering degree from a southeastern university, Greg accepted a position as a structural engineer with a national defense contractor in eastern Virginia. It was there that he met an attractive engineering colleague by the name of Sarah Staggers. Though significant professional rivalry and tension initially existed between the two, Greg and Sarah ultimately became friends. Before long, both realized a relationship was developing and that these two closely matched, highly competitive colleagues actually complemented each other quite well. Greg and Sarah started dating in the summer of 2003.

. . .

Keywords: data analysis, pricing, regression

Suggested Citation

Pfeifer, Phillip E. and Mills, Greg, Sarah Gets a Diamond. Darden Case No. UVA-QA-0702, Available at SSRN: https://ssrn.com/abstract=1284274

Phillip E. Pfeifer (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924-4803 (Phone)

HOME PAGE: http://www.darden.virginia.edu/faculty/Pfeifer.htm

Greg Mills

The Brenthurst Foundation ( email )

P.O. Box 61631
Marshalltown, 2107
South Africa

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