Question: Problem #1

The cost of a one carat VS2 clarity, H color diamond source usa is $5600. A Midwestern jeweler makes calls to contacts in the diamond district of NYC to see whether the mean price of diamonds there differs from $5600.

a.) Formulate hypotheses that can be used to determine whether the mean price in NY differs from $5600.

b.) A sample of 25 New York City contacts provided prices shown in the CD File named Diamonds. What is the p-value?

c.) C. at a= .05, can the null hypotheses be rejected? What is your conclusion?

d.) Repeat the preceding hypothesis test using the critical value approach.