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. 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 file named Diamonds. What is the p-value?
c. At α = .05, can the null hypothesis be rejected? What is your conclusion?
d. Repeat the preceding hypothesis test using the critical value approach.