Consider the diamond prices (standardized by weight) for diamonds with weights 0

Question

Consider the diamond prices (standardized by weight) for diamonds with weights 0.99 carat and 1 carat. See the table for summary statistics, and then construct a 95% confidence interval for the average difference between the standardized prices of 0.99 and 1 carat diamonds. You may assume the conditions for inference are met. (Round your answers to two decimal places.) 0.99 carat $44.52 $13.33 23 1 carat $57.81 $14.11 23 Mean SD $-21.45 X$-5.13X In your calculations, use Excel commands to obtain t-distribution values with lots of decimal places

Explanation / Answer

[11.55, 15.03]

1 - 2 = (M1 - M2) ± ts(M1 - M2)

where:

M1 & M2 = sample means
t = t statistic determined by confidence level
s(M1 - M2) = standard error = ((s2p/n1) + (s2p/n2))

1 - 2 = (M1 - M2) = 13.29, 95% CI [11.55, 15.03].

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