Low Mart is a large retailer who claims to be committed to providing low prices to its customers. Their slogan is "we promise that your average bill for identical items will not be less at any other retailer".

In order to keep its promise, Low Mart constantly compares the average prices in its stores to those of Cheap Mart, its closest competitor. In a recent study, using a one-week shopping plan (grocery and health and beauty products), identical purchases were made at 100 randomly selected Low Mart and Cheap Mart Stores during a single week (see file: Low Price Guarantee.xlsx).

Based on this study, does Low Mart deliver on their promise that shoppers on average will not pay less at other retailers?

a)State the null and alternate hypotheses. Make sure that your hypotheses are clear and unambiguous.

b)Based on this sample, what are the average price and the standard deviation for Low Mart?

c)Do you reject the null hypothesis at 5% level of significance? Why or why not?

d)Do you reject the null hypothesis at 1% level of significance? Why or why not?

e)Please explain your findings in a clear language intended for a non-technical audience. How is Low Mart delivering on its promise to its customers?