The data are displayed in the following table:
Let’s look at some descriptive statistics on diamond prices:
| Min. | 1st Qu. | Median | Mean | 3rd Qu. | Max. |
|---|---|---|---|---|---|
| 386 | 927 | 2219 | 3980.3 | 5426.25 | 18480 |
Our goal is to fit an exponential distribution on diamond prices. In order to do so, recall that the parameter of the exponential distribution is the inverse of its mean. The sample mean of our sample is 3980.3, which yields the following result:
