Getting more context

According to the website https://www.diamonds.pro, the most important factor in the price of the diamond is the carat or weight of the diamond. Along with the carat, other very important characteristics that play an important role in the price of diamonds are color, clarity, and cut. This is good news, since it seems that we have all these features contained in our dataset.

Another key characteristic about diamonds is the certification process, and there is no information about certification in the dataset, which is potentially problematic since our research shows that people will be willing to pay much less for a diamond that is not certified. This is one of the key questions that you will have to ask the IDR people. After talking with them, they inform you that they will only deal with certified diamonds and that the dataset you will work with is about certified diamonds.

This is an example of the limitations that must be considered in any predictive model. In this case, since only certified diamonds will be used for model building and training, it would be incorrect to use this model to predict the price of diamonds that are not certified. We will discuss model limitations much more in the modeling chapters.