307 Diamonds Were Sampled and Randomly Sorted into Three Groups

question 23

Multiple Choice

307 diamonds were sampled and randomly sorted into three groups of diamonds. These diamonds were randomly assigned to one of the three organizations, or groups (HRD, GIA, or IGI) , that certify the appraisal of diamonds. A study was conducted to determine if the average size of
Diamonds reported by these three certification groups differ. A completely randomized design was used and the resulting ANOVA table is shown below.

One-Way AOV for CARAT by CERT
$\begin{array}{lccccc}\text { Source } & \text { DF } & \text { SS } & \text { MS } & \text { F } & \text { P } \\\hline \text { CERT } & 2 & 8.3265 & 4.16326 & 83.21 & 0.0000 \\\text { Error } & 305 & 15.2604 & 0.05003 & &\end{array}$

Give a practical conclusion for the test in the words of the problem. Use $\alpha = 0.10$ to make your conclusion.

• A) There is sufficient evidence to indicate that differences exist among the mean carat weights for the three certification groups.
• B) There is sufficient evidence to indicate that the mean carat weight for the HRD group equals the mean carat weight for the IGI group.
• C) There is sufficient evidence to indicate that the mean carat weight for the GIA group is lower than the other two groups.
• D) There is insufficient evidence to indicate that differences exist among the mean carat weights for the three certification groups.

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Definitions:

Probability

A quantification of an event's probability, on a scale from 0 to 1, where a 0 denotes the event is impossible and a 1 denotes the event is assured to occur.

Foreclosed

A legal process where a lender takes control of a property from a borrower who has failed to meet the terms of their loan.

Vickrey Auction

A sealed-bid auction where the highest bidder wins but pays the amount bid by the second-highest bidder.

Willingness To Pay

The maximum amount an individual is ready to spend to acquire a good or service.