Most consumers are not diamond experts

Question

Question

3. Comparing two population means (independent samples, sigmas unknown)

Most consumers are not diamond experts, so many rely on an independent certification body to determine a diamond's value Diamonds are assessed on four characteristics, referred to as the "four Cs": carat weight, color, clarity, and cut. Several certification bodies issue diamond grading reports, including the Gemological Institute of America (GIA), the Hoge Raad voor Diamant (HRD), and the International Gemological Institute (IGI)

If a certification body is recognized as strict in its grading, diamonds certified by that body may sell for higher prices than diamonds with the same grades that are certified by a different body. Compare the prices of diamonds graded by one certifier to the prices of diamonds graded by a different certifier to learn whether one population carries a price premium. The Diamonds data set in the following DataView tool contains data on the carat weight, color, clarity, certification body, and selling price of a random sample of 308 round-cut diamond stones. [Source: Singfat Chu, Journal of Statistics Education Data Archive.]

3. Comparing two population means (independent samples, sigmas unknown) Aa Aa Most consumers are not diamond experts, so many The point estimate of μ1-μ2 is $1,871 . (Hint: Use the DataView tool to obtain the statistics that form the point estimate.) You conduct test with the null and alternate hypotheses formulated as: The value of the test statistic is The P-value is than