Steven just registered to an undergraduate business program and he managed to get the first-year booklist for his study program. For the purpose of saving money, he plans to find out whether online purchase is cheaper than purchasing in brick-and-mortar bookstore. To answer his question, the median prices at the local bookstore and at the online retailer are recorded in the following table:

Author Bookstore Online Pride 132.75 136.91 Bade 153.50 120.43 Case 153.50 217.99 Brigham 216.00 197.10 Griffin 199.75 168.71 Grewal 132.00 95.89 Federer 89.95 91.69 Hoyle 123.02 148.41 Fuller 88.25 83.69 Shapiro 210.25 147.30 Quinn 80.00 65.00 Barlow 182.25 145.49 Pindyck 189.25 133.32 George 147.00 178.63 Carroll 201.50 178.58

a. State the appropriate null and alternative hypotheses for Steven’s concern.

b. By using the null and alternative hypotheses in part

a, construct a hypothesis test with a = 0.005 to help Steven answer his question.

c. What assumption can be made for the distribution of the data when n increases?