In order to control costs, a company wishes to study the amount of money its sales...
In order to control costs, a company wishes to study the amount of money its sales force spends entertaining clients. The following is a random sample of six entertainment expenses (dinner costs for four people) from expense reports submitted by members of the sales force
| $ | 358 | $ | 337 | $ | 324 | $ | 377 | $ | 348 | $ | 341 | ||||||||||||
(a) Calculate x⎯⎯x¯ , s2, and s for the expense data. (Round "Mean" and "Variances" to 2 decimal places and "Standard Deviation" to 3 decimal places.)
| x⎯⎯x¯ | |
| s2 | |
| s | |
(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. (Round intermediate
calculations and final answers to 2 decimals.)
| [x⎯⎯x¯ ± s] | [, ] |
| [x⎯⎯x¯ ± 2s] | [, ] |
| [x⎯⎯x¯ ± 3s] | [, ] |
(c) If a member of the sales force submits an entertainment expense (dinner cost for four) of $390, should this expense be considered unusually high (and possibly worthy of investigation by the company)? Explain your answer.
| No | |
| Yes |
(d) Compute and interpret the z-score for each of the six entertainment expenses. (Round z-score calculations to 2 decimal places. Negative amounts should be indicated by a minus sign.)
| z358 | |
| z337 | |
| z324 | |
| z377 | |
| z348 | |
| z341 | |
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In order to control costs, a company wishes to study the amount
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