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Chapter 8: Q.9.121 (page 390)

Capital Spending. An issue of Brokerage Report discussed che capital spending of telecommunications companies in the United States and Canada. The capital spending, in thousands of dollars, for each of 27 telecommunications companies is shown in the following table.

9.3102.5153.0271.3001.800703.634
6566645.9476496821.433389
17.3415.2991958.5434.2007.88611.189
1.0061.4031.982211252.205

Short Answer

Expert verified

The graphical representations we find that there is an outlier in the data and the variable under consideration is far from being normally distributed since the normal probability plot is not even roughly linear. Hence, it is not reasonable to use tinterval procedure on the given data.

Step by step solution

01

Given Information

We produce probability, plot, box plot, histogram, and stem and leaf plots of the data using Minitab.

02

Calculation

Stem-and-Leaf Display: SPENDING

Leaf Unit = 1000

Stem Leaf

(15)0000000000111111
1202233
80455
507
4089
211
11
11
117
鈥嬧赌嬧赌嬧赌�
03

Definition

The sample size of n=27 is considered modest. The graphical representations reveal that the data contains an outlier and that the variable under examination is not normally distributed, since the normal probability plot is not even fairly linear. As a result, using the tinterval technique on the provided data is not a good idea.

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