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.)

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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.)
 

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