Comparative analysis and price modelling of natural and lab-grown diamonds

This work analyses a natural and lab-grown diamonds dataset collected from an online retailer. Exploratory analysis demonstrates that natural and lab-grown diamonds differ in all aspects of attributes. A price model integrates both types into the analytical framework. According to the model, carat weight has an enormous influence on the price of both types followed by colour and clarity. Hypothesis-driven comparison of these two diamond categories reveals distinct carat prices across carat subgroups. We organise the dataset into structured subgroups using pivot tables assembled by carat range, colour, and clarity. The resulting price-difference matrix is converted to heat maps for round and fancy-shaped diamonds. The findings confirm that natural diamonds consistently achieve higher per-carat values than lab-grown diamonds for these two shapes of diamonds. This analysis provides insights into the factors driving the pricing structures of both diamond types, contributing to an improved understanding of their respective market dynamics.