I am working with the diamonds data set from the tidyverse package in R.
My question is, how do I make sure there are groups here? What are these groups? Lastly, if I do not have the data on what these groups actually are, let's say for our case the groups are continent from which the diamond was found.
Once I distinguish the groups (maybe through GMM) how do I incorporate it in a regression model, where I regress prices on carat?
Thank you kindly.
Edit** I am editing this comment due to Henry's comment. It's more of friendly rebuttal to the comment - try to explain the DV with features in the data set before trying to group the DV.