The cost of a one-carat VS2 clarity, H color diamond from Diamond Source USA is

Question

The cost of a one-carat VS2 clarity, H color diamond from Diamond Source USA

is $5600 (Diamond Source website, March 2003). A midwestern jeweler makes calls to contacts

in the diamond district of New York City to see whether the mean price of diamonds there differs

from $5600. A sample of 25 New York City contacts provided the prices shown in the file named

Diamonds.xlsx.

a. Formulate hypotheses that can be used to determine whether the mean price in New York City

differs from $5600.

b. Build a hypothesis testing template and print your output. = 0.05. What is your conclusion?

c. Build a confidence interval template and print your output. Construct a 95% confidence interval.

HERE IS THE LINK TO THE FILE NAMED DIAMONDS.XLXS

https://drive.google.com/file/d/0B6vqkj-k2RxOa2ZyS0piN0dNcmM/view

PLEASE SHOW STEPS ON HOW TO DO IT IN EXCEL

Explanation / Answer

here for std error =std deviation/(n)1/2 =104.023

for 95% CI, and 24 df , tcritical=2.0639

here test stat t=(X-mean)/std error =(5835-5600)/104.023 =2.259

as test stat is greater then t critical we reject null hypothesis and conclude that

the mean price in New York City

differs from $5600

confidence interval =sample mean -/+ t*std errorr =5620.31 ; 6049.69

price 4620 6210 5150 5250 4840 6320 5450 5620 6140 5850 5640 6575 5940 5850 5825 5820 6850 6010 5960 5980 6330 5990 5995 6360 5300 mean 5835 std deviation 520.11

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