Advertising expenses are a significant component of the cost of goods sold. Listed below is a frequency distribution showing the advertising expenditures for 75 manufacturing companies located in the Southwest. The mean expense is $50.67 million and the standard deviation is $11.07 million. Is it reasonable to conclude the sample data are from a population that follows a normal probability distribution? Advertising Expense($ Million)Numberof Companies25 up to 35 7 35 up to 45 14 45 up to 55 29 55 up to 65 17 65 up to 75 8 Total 75 Click here for the Excel Data File a. State the decision rule. Use the 0.01 significance level. (Round your answer to 2 decimal places.) H0: The population of advertising expenses follows a normal distribution.H1: The population of advertising expenses does not follow a normal distribution. Reject H0 if chi-square >_______________ b. Compute the value of chi-square. (Round your answer to 2 decimal places.)

Let us first test whether “The population of advertising expenses follows normal probability…

Answered: Advertising expenses are a significant…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Advertising expenses are a significant component of the cost of goods sold. Listed below is a frequency distribution showing the advertising expenditures for 75 manufacturing companies located in the Southwest. The mean expense is $50.67 million and the standard deviation is $11.07 million. Is it reasonable to conclude the sample data are from a population that follows a normal probability distribution?

Advertising Expense ($ Million)	Number of Companies
25 up to 35		7
35 up to 45		14
45 up to 55		29
55 up to 65		17
65 up to 75		8
Total		75

Click here for the Excel Data File

a. State the decision rule. Use the 0.01 significance level. (Round your answer to 2 decimal places.)

H₀: The population of advertising expenses follows a normal distribution.

H₁: The population of advertising expenses does not follow a normal distribution.