What is the Average Cost of an Engagement Ring

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Here's the power point from my presentation on the average cost of an engagement ring bought online.

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What is the Average Cost of an Engagement Ring

  1. 1. A Statistical Study Evaluating the Average Cost of Engagement Rings Purchased Online <br />Presented by BuyDiamondRings.org<br />
  2. 2. Many sources have reported different numbers, ranging from $3,000 to $6,000.<br />About.com reports that the average cost is the range of $3,500 to $4,000 (link) <br />Learnvest.com reports that the average engagement ring in 2009 sold for $3,150 (link).<br />TheKnot.com reports that the average cost of an engagement ring in 2010 was $5,392 (link). <br />What’s the Average Cost of an Engagement Ring?<br />
  3. 3. The Wall Street Journal reported in 2006 that $5,600 was the average cost for an engagement ring purchased on the net(link).<br />I focused on online engagement ring sales for my study.<br />I took a sample of 829 engagement rings sold online in late 2010/early 2011 and analyzed the cost data.<br />What about online, specifically?<br />
  4. 4. Most expensive ring: $86,829.<br />Lease expensive ring: $698 .<br />Mean: $8,613.26.<br />Median: $6,071.00.<br />Mode: $3,379.00.<br />Standard Deviation: $8,144.90.<br />Skew**: 3.07<br />** The skew is important – notice it on the graph on the next slide.<br />Here’s what I found…<br />
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  6. 6. As you can see, there were two things that stood out about the histogram.<br />#1: The skewness. As reported a few slides back, there is a strong skew value of 3.07<br />#2: The outliers. There were numerous outlies on the upper end of the distribution.<br />What happens when I remove the outliers?<br />The results<br />
  7. 7. Mean: $7,696.63.<br />Median: $5,969.00.<br />Standard Deviation: $5,707.24.<br />Skew: 1.36<br />The mean changed drastically, but the median was almost unchanged. This is typical when there are so many outliers and a strong skewness. Here’s the graph without the outliers:<br />Results with Outliers Removed<br />
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  9. 9. Even after removing the outliers, the distribution is still skewed. <br />Given the skew and the outliers, the median is a better measure of the average cost of an engagement ring purchased online.<br />In this study, the two medians were $6,071 and $5,969. Averaging these two medians out gives $6,020, almost exactly $6,000.<br />Using these results, I would infer that the average price of an engagement ring purchased online is $6,000.<br />Still skewed, but better…<br />
  10. 10. This was a presentation by BuyDiamondRings.org.<br />Data was provided by Blue Nile.<br />If you are in the market for an engagement yourself, please read our engagement rings guide. <br />

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