Question

n a recent study of enterprise resource planning? (ERP) system? effectiveness, researchers asked companies how they assessed the success of their ERP systems. Out of 390 manufacturing companies? surveyed, they found that 179 used return on investment? (ROI),160 used reductions in inventory? levels,36 used improved data? quality, and 15 used? on-time delivery. In a survey of 640 service? firms,290 used? ROI,270 used inventory? levels,50used improved data? quality, and 30 used? on-time delivery. Is there evidence that the measures used to assess ERP system effectiveness differ between service and manufacturing? firms? Perform the appropriate test and state your conclusion.

Determine the ?2 statistic.

what is p value

Answer 1

Ans:

	Observed count(fo)
	ROI	Inventory	improved	on time	Total
Manufacturing	179	160	36	15	390
service	290	270	50	30	640
Total=	469	430	86	45	1030
	Expected count(fe)
	ROI	Inventory	improved	on time	Total
Manufacturing	177.58	162.82	32.56	17.04	390
service	291.42	267.18	53.44	27.96	640
Total=	469	430	86	45	1030
	Chi square=(fo-fe)^2/fe
	ROI	Inventory	improved	on time	Total
Manufacturing	0.011	0.049	0.363	0.244	0.667
service	0.007	0.030	0.221	0.149	0.406
Total=	0.018	0.078	0.584	0.393	1.073

Test statistic:

Chi square score=1.073

df=(4-1)*(2-1)=3

p-value=CHIDIST(1.073,3)=0.7836

As,p-value>0.p5,we fail to reject null hypothesis.We can conclude that there is no difference in effectiveness of ERP system between service and manufacturing firms.