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.)

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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.

Reject H₀ if chi-square >

_______________

b. Compute the value of chi-square. (Round your answer to 2 decimal places.)

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

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