The management of a kitchenware company is evaluating the financial viability of one of its stores located in Claremont, Cape Town. One measure they would like to estimate is the mean value of purchases at this store. If the mean value of all purchases (in rand) is likely to be less than R150, the management will consider closing the branch.
The management selected a random sample of 50 invoices of recent sales and recorded each transaction value (in rand).
(a) Construct a histogram using the Histogram option in Data Analysis to check the assumption of normality. Does the data appear to be normally distributed? Comment.
(b) What recommendation would you make to the management about the continued trading of this Claremont store? Base your recommendation on the results of a hypothesis test for a single mean conducted at the 5% significance level. Show the null and alternative hypothesis.