A retailer entered into an exclusive agreement with a supplier who guaranteed to provide all products at competitive prices. To be sure the supplier honored the terms of the agreement, the retailer had an audit performed on a random sample of 25 invoices. The percent of purchases on each invoice for which an alternative supplier offered a lower price than the original supplier was recorded.17 For example, a data value of 38 means that the price would be lower with a different supplier for 38% of the items on the invoice. A histogram and some numerical summaries of the data are shown here. The retailer would like to determine if there is convincing evidence that the mean percent of purchases for which an alternative supplier offered lower prices is greater than 50% in the population of this company’s invoices.

a. State appropriate hypotheses for the retailer’s test. Be sure to define your parameter.

b. Check if the conditions for performing the test in part (a) are met.

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14 12 10 8 20 40 60 80 100 120 Percent lower 4) 2.