An Article in the Journal of Statistics Education Reported the Price

question 7

Essay

An article in the Journal of Statistics Education reported the price of diamonds of different sizes in Singapore dollars (SGD). The following table contains a data set that is consistent with this data, adjusted to US dollars in 2004:



-Make a scatterplot and describe the association between the size of the diamond (carat) and the cost (in US dollars).

---

Definitions:

Deflation

A decrease in the general price level of goods and services, often leading to an increase in the real value of money.

Annual Interest Rate

The percentage of the principal that is paid as interest to the lender over the course of a year.

Consumer Price Inflation

The pace at which the average cost of goods and services elevates, resulting in diminished purchasing capacity.

CPI

The CPI, or Consumer Price Index, tracks the average variation in prices that urban customers pay for a selection of consumer goods and services over a period of time.