1. Using the following data regarding hospital monthly expenditures in 000's of dollars, evaluate normality. Are the data normal?
data=c(100,150, 250,300, 125, 100, 110, 115, 225, 90,70,100,105)
2. Conduct a log transformation, square root transformation, recipricoal transformation, and reverse score transformation to test for normality. Which of these transformations is best?
3. Install the car package and load it using the following code.
install.packages("car")
library(car)
Then run the command powerTransform(Adj.Close). What is the optimal power transformation for your chosen stock? Raise your variable to that power and evaluate normality again.
4. What did you take away from this analysis?