In order to control costs, a company wishes to study the amount of money its sales force
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$157 $132 $109 $145 $125 $139
a. Calculate , s and s for the expense data. In addition, show that the two different formulas for calculating s2 give the same result,
b. Assuming that the distribution of entertainment expenses is approximately normally distributed, calculate estimates of tolerance intervals containing 68.26 percent, 95.44 percent, and 99.73 percent of all entertainment expenses by the sales force,
c. If a member of the sales force submits an entertainment expense (dinner cost for four) of $ 190, should this expense be considered unusually high (and possibly worthy of investigation by the company)? Explain your answer.
d. Compute and interpret the z-score for each of the six entertainment expenses. Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Related Book For
Business Statistics In Practice
ISBN: 9780073401836
6th Edition
Authors: Bruce Bowerman, Richard O'Connell
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