Question

# A wholesaler has recently developed a computerized sales invoicing system. Prior to implementing this system, a...

A wholesaler has recently developed a computerized sales invoicing system. Prior to implementing this system, a manual system was used. The distribution of the number of errors per invoice for the manual system is as follows:

 Errors per Invoice 0 1 2 3 More Than 3 Percentage of Invoices 84% 8% 3% 3% 2%

After implementation of the computerized system, a random sample of 500 invoices gives the following error distribution:

 Errors per Invoice 0 1 2 3 More Than 3 Number of Invoices 466 16 10 4 4
 pi Ei fi (f – E) ^ 2/E 0.84 420 466 5.0381 0.08 40 16 14.4000 0.03 15 10 1.6667 0.03 15 4 8.0667 0.02 10 4 3.6000 Chi-Square 32.77150 p-value 0.0000001096

(a) Show that it is appropriate to carry out a chi-square test using these data.

Each Ei ≥

(b) Use the Excel output shown above to determine whether the error percentages for the computerized system differ from those for the manual system at the .05 level of significance. What do you conclude?

(Click to select)RejectDo not reject H0: Conclude systems (Click to select)differnot differ.

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