The cost of a one-carat VS2 clarity, H color diamond from Diamond Source USA is $5600. 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. Formulate hypotheses that can be used to determine whether the mean price in New York City differs from $5600.
b. A sample of 25 New York City contacts provided the prices shown in the attached file named diamonds. What is the p-value?
c. at a = .05, can the null hypothesis be rejected? What is your conclusion?
d. Repeat the preceding hypothesis test using the critical value approach.
This problem looks at several steps in making and testing hypotheses.