Question

In: Statistics and Probability

(b) Determine the proportion of the Revenue Growth data that lies within 1, 2, and 3...

(b) Determine the proportion of the Revenue Growth data that lies within 1, 2, and 3 standard deviations of the mean. Determine, using the empirical rule, if the Revenue Growth data is approximately normally distributed.

Company Name Revenue Growth
(% in last year)
Abercrombie & Fitch Co. 2.7
American Eagle Outfitters 2.5
bebe stores, inc. 10.0
Birks Group Inc 5.3
BJs Wholesale Club Holdings Inc 3.4
Boot Barn Holdings Inc 12.7
Bravada International Ltd. -4.7
Buckle Inc -14.9
Burlington Stores Inc -13.5
Cache Inc -9.9
Caleres Inc -10.8
Cato Corp 9.2
Chico's FAS, Inc. 10.4
Childrens Place Inc -16.0
Christopher & Banks Corporation 8.9
Citi Trends, Inc. -9.9
Companhia Brasileira de Distribuicao 25.7
Costco Wholesale Corporation 1.6
Designer Brands Inc -0.2
Destination Maternity Corp -15.1
Dillard's, Inc. -2.4
Express, Inc. -9.9
Foot Locker, Inc. -0.9
Francesca's Holdings Corp 24.8
Gap Inc 2.4
Genesco Inc. -3.3
Guess?, Inc. -4.5
J C Penney Company Inc -4.5
J.Jill Inc -5.4
Kohl's Corporation 4.4
L Brands Inc 8.7
Macy's Inc -8.7
Nordstrom, Inc. -5.2
PriceSmart, Inc. 0.4
Qingco Inc -35.8
Ross Stores, Inc. 2.6
RTW Retailwinds Inc 0.1
Sears Holdings Corp -0.5
Shoe Carnival, Inc. 8.8
Stage Stores Inc 52.4
Stein Mart, Inc. 3.7
Tailored Brands Inc -4.3
Tandy Leather Factory, Inc. -9.9
Tilly's Inc 7.2
TJX Companies Inc 3.3
Urban Outfitters, Inc. 0.8
Walmart Inc -3.5
Zumiez Inc. -8.1

Solutions

Expert Solution

There are 48 data points

by 68-95-99.7 rule,

68% lies within 1 sd, 95% lies within 2 sd , and 99.7 % lies within 3 sd of mean

using given data

Company Name Revenue Growth
(% in last year) z-score |z| < 1 |z| < 2 |z| < 3
Abercrombie & Fitch Co. 2.7 0.19 1 1 1
American Eagle Outfitters 2.5 0.18 1 1 1
bebe stores, inc. 10 0.76 1 1 1
Birks Group Inc 5.3 0.39 1 1 1
BJs Wholesale Club Holdings Inc 3.4 0.25 1 1 1
Boot Barn Holdings Inc 12.7 0.97 1 1 1
Bravada International Ltd. -4.7 -0.38 1 1 1
Buckle Inc -14.9 -1.17 0 1 1
Burlington Stores Inc -13.5 -1.06 0 1 1
Cache Inc -9.9 -0.78 1 1 1
Caleres Inc -10.8 -0.85 1 1 1
Cato Corp 9.2 0.70 1 1 1
Chico's FAS, Inc. 10.4 0.79 1 1 1
Childrens Place Inc -16 -1.25 0 1 1
Christopher & Banks Corporation 8.9 0.67 1 1 1
Citi Trends, Inc. -9.9 -0.78 1 1 1
Companhia Brasileira de Distribuicao 25.7 1.97 0 1 1
Costco Wholesale Corporation 1.6 0.11 1 1 1
Designer Brands Inc -0.2 -0.03 1 1 1
Destination Maternity Corp -15.1 -1.18 0 1 1
Dillard's, Inc. -2.4 -0.20 1 1 1
Express, Inc. -9.9 -0.78 1 1 1
Foot Locker, Inc. -0.9 -0.09 1 1 1
Francesca's Holdings Corp 24.8 1.90 0 1 1
Gap Inc 2.4 0.17 1 1 1
Genesco Inc. -3.3 -0.27 1 1 1
Guess?, Inc. -4.5 -0.36 1 1 1
J C Penney Company Inc -4.5 -0.36 1 1 1
J.Jill Inc -5.4 -0.43 1 1 1
Kohl's Corporation 4.4 0.32 1 1 1
L Brands Inc 8.7 0.66 1 1 1
Macy's Inc -8.7 -0.69 1 1 1
Nordstrom, Inc. -5.2 -0.42 1 1 1
PriceSmart, Inc. 0.4 0.01 1 1 1
Qingco Inc -35.8 -2.79 0 0 1
Ross Stores, Inc. 2.6 0.18 1 1 1
RTW Retailwinds Inc 0.1 -0.01 1 1 1
Sears Holdings Corp -0.5 -0.05 1 1 1
Shoe Carnival, Inc. 8.8 0.66 1 1 1
Stage Stores Inc 52.4 4.04 0 0 0
Stein Mart, Inc. 3.7 0.27 1 1 1
Tailored Brands Inc -4.3 -0.35 1 1 1
Tandy Leather Factory, Inc. -9.9 -0.78 1 1 1
Tilly's Inc 7.2 0.54 1 1 1
TJX Companies Inc 3.3 0.24 1 1 1
Urban Outfitters, Inc. 0.8 0.05 1 1 1
Walmart Inc -3.5 -0.29 1 1 1
Zumiez Inc. -8.1 -0.64 1 1 1
0.210416667 frequency 40 46 47
12.9299461 proportion 0.833 0.958 0.979

hence 83.3 % lies within 1 sd,

95.8 % within 2 sd

97.9 % within 3 sd

we see that there is high proportion of data within 1 sd

hence the Revenue Growth data is not approximately normally distributed.


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