Name: (Print) Bella Prebil Section: 3
STATISTICS 101 - Module 4b Written Homework
Diamonds. Suppose you are planning to purchase a diamond and are curious about how much money
you would need to spend. A random sample of 351 diamonds was taken and their size (in carats) were
recorded.1 These data can be found in the JMP data file [Link].
1. Use JMP to calculate the sample mean price of diamonds and the sample standard deviation of the
price of diamonds.
sample mean price= $7450 01 .
sample standard deviation $7780 89 =
.
2. How closely does the shape of the distribution of the price of diamonds follow the normal model?
Explain briefly.
Does not follow the normal model
-
Not symmetric
skews to
right
-
-curved line on quantile plot
- outliers
3. Check to see if the three conditions that are needed to make confidence intervals and do hypothesis
tests for this example (you only need to check the conditions)
diamonds were taken
Randomization condition A random sample of
:
10 % condition: 351 diamonds is less than 10% of the diamonds available to purchase
Nearly normal condition : Does not pass the Condition because the histogram doesn't follow the
right bell Shape (skewed
4. Focus specifically on the Nearly Normal condition. Suppose the sample size had been 40 diamonds
instead of 351. Considering your answer to question 2, is it likely that a sample size of 40 would be
large enough to give us a sampling distribution that is approximately normal? Explain.
Itsunlikely that the sample size of 40 would be large enough because 351 diamonds
distribution. As you get more data/samples the more it becomes
was not
enough to get a normal the sample
,
size makes it have less normal distribution .
a normal distribution so
lowering Reducing the
samplecize doesn't reduce skewness which is the issue with the 351 sample size.
1 Diamond data obtained from [Link] on July 28, 2005.
1
5. Calculate a 98% confidence interval by hand to estimate the population mean price of diamonds. Show
all your work, then you may use JMP to get a 98% interval to verify your hand work.
St 7780 89 415 31
= .
(6482 33 8417 = .
. . . 69)
.33 x 45 31 967 68
2 .
=
.
7458 967 68 6482 33
-
.
:
.
7450 + 967 68 8417 69.
=
.
6. Interpret your confidence interval.
we are 98 % confident that the mean total price of diamonds Is
between 16482 33 8417 69) .
.
.
7. Suppose you are concerned about how much money you will have to spend on a diamond and are
wondering if the population average price is less than $8,000. Obtain JMP output to help you conduct
a hypothesis test to test if the population average price is less than $8,000. You can use JMP output
for many of the steps, but be sure to show all steps in your test. You do not have check the conditions
again. Turn in your JMP output with this homework. (Refer to the the JMP guide on Canvas
for help getting the output.).
1. Ho-800
. check
2 conditions
.y
3 = + 18000, 7788 89) .
4. th 1 Y-M sX -
= +
7450 01 8000 x 7788
.
-
+ 5551 =
-1 32
.
5 0 0934
.
.
6 weak evidence
.
7
. there is weak evidence that the population proportion that the mean total
price of diamonds is less than $8000