Gems of Prediction: From Clarity to Carats - Unveiling Diamond Prices with Machine Learning in Waikato Environment for Knowledge Analysis

Background: This research focuses on using Weka's toolkit to test machine learning models for predicting diamond prices. The complexity of diamond value characteristics, such as carat, cut, color, and clarity, motivates the study to find the most accurate models. The goal is to promote fairer market processes and customer education. Methods used: The research rigorously preprocesses a diamond attributes dataset using Weka for analysis. Various machine learning algorithms are examined, including simple algorithms like Decision Stump and ZeroR, sophisticated models like M5P and REP Tree, and advanced ensemble approaches like Bagging with REP Tree. Model performance is evaluated using train/test splits (80-70-60%) and cross-validation (5-fold and 10-fold) with metrics such as Correlation Coefficient, MAE, and RMSE. Results achieved: The research finds that ensemble approaches, particularly Bagging with REP Tree, outperform simple and sophisticated models in diamond price prediction. These techniques demonstrate higher accuracy and lower error rates, highlighting the need for multiple models to capture the complexity of diamond valuation. Simple models provide benchmarks and insights into dataset trends but are less precise. Concluding remarks: This study contributes to the understanding of machine learning algorithms for diamond price prediction, an important economic valuation subject. It demonstrates the effectiveness of complex data analysis methods using Weka. The research also highlights the accessibility and sophistication of machine learning at the crossroads, with Weka's cutting-edge algorithms making complicated analytical methods more accessible for practical, everyday use. This work adds to the knowledge of the dynamics of diamond prices and the role of machine learning in economic research.