7.24 Diamonds, Part I. Prices of diamonds are determined by what is known as the 4 Cs: cut, clarity, color, and carat weight. The prices of diamonds go up as the carat weight increases, but the increase is not smooth. For example, the difference between the size of a 0.99 carat diamond and a 1 carat diamond is undetectable to the naked human eye, but the price of a1 carat diamond tends to be much higher than the price of a 0.99 diamond. In this question we use two random samples of diamonds, 0.99 carats and 1 carat, each sample of size 23, and compare the average prices of the diamonds. In order to be able to compare equivalent units, we first divide the price for each diamond by 100 times its weight in carats. That is, for a 0.99 carat diamond, we divide the price by 99. For a1 carat diamond, we divide the price by 100. The distributions and some sample statistics are shown below.20 Conduct a hypothesis test to evaluate if there is a difference between the average standardized prices of 0.99 and 1 carat diamonds. Make sure to state your hypotheses clearly, check relevant conditions, and interpret your results in context of 80 60- the data. 0.99 carats 1 carat 40 - Mean $44.51 $56.81 SD $13.32 $16.13 20 23 23 0.99 carats 1 carat Point price (in dollars)
7.24 Diamonds, Part I. Prices of diamonds are determined by what is known as the 4 Cs: cut, clarity, color, and carat weight. The prices of diamonds go up as the carat weight increases, but the increase is not smooth. For example, the difference between the size of a 0.99 carat diamond and a 1 carat diamond is undetectable to the naked human eye, but the price of a1 carat diamond tends to be much higher than the price of a 0.99 diamond. In this question we use two random samples of diamonds, 0.99 carats and 1 carat, each sample of size 23, and compare the average prices of the diamonds. In order to be able to compare equivalent units, we first divide the price for each diamond by 100 times its weight in carats. That is, for a 0.99 carat diamond, we divide the price by 99. For a1 carat diamond, we divide the price by 100. The distributions and some sample statistics are shown below.20 Conduct a hypothesis test to evaluate if there is a difference between the average standardized prices of 0.99 and 1 carat diamonds. Make sure to state your hypotheses clearly, check relevant conditions, and interpret your results in context of 80 60- the data. 0.99 carats 1 carat 40 - Mean $44.51 $56.81 SD $13.32 $16.13 20 23 23 0.99 carats 1 carat Point price (in dollars)
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Transcribed Image Text:7.24 Diamonds, Part I. Prices of diamonds are determined by what is known as the 4 Cs: cut, clarity,
color, and carat weight. The prices of diamonds go up as the carat weight increases, but the increase is not
smooth. For example, the difference between the size of a 0.99 carat diamond and a 1 carat diamond is
undetectable to the naked human eye, but the price of a 1 carat diamond tends to be much higher than the
price of a 0.99 diamond. In this question we use two random samples of diamonds, 0.99 carats and 1 carat,
each sample of size 23, and compare the average prices of the diamonds. In order to be able to compare
equivalent units, we first divide the price for each diamond by 100 times its weight in carats. That is, for
a 0.99 carat diamond, we divide the price by 99. For a 1 carat diamond, we divide the price by 100. The
distributions and some sample statistics are shown below.20
Conduct a hypothesis test to evaluate if there is a difference
between the average standardized prices of 0.99 and 1 carat
diamonds. Make sure to state your hypotheses clearly, check
relevant conditions, and interpret your results in context of
the data.
80
60-
0.99 carats
1 carat
40-
Mean
$44.51
$56.81
SD
$13.32
$16.13
20
23
23
0.99 carats
1 carat
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