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 35735 up to 451445 up to 552955 up to 651765 up to 758Total75 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.)

Thus, the degrees of freedom is 4. Use EXCEL to obtain the chi square critical value at the 0.01…

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

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.