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Scenario 11-4 A computer used by a 24-hour banking service is supposed to random

ID: 3180041 • Letter: S

Question

Scenario 11-4

A computer used by a 24-hour banking service is supposed to randomly assign each transaction to one of 5 memory locations. A check at the end of a day's transactions gave the counts shown in the table to each of the 5 memory locations, along with the number of reported errors.


The bank manager wanted to test whether the proportion of errors in transactions assigned to each of the 5 memory locations differ.


Q1: Referring to Scenario 11-4, the degrees of freedom of the test statistic is

A) 10

B) 8

C) 448

D) 4

Q2: Referring to Scenario 11-4, the calculated value of the test statistic is

A) -0.1777

B) 1.4999

C) -0.0185

D) 1.5190

Q3: Referring to Scenario 11-4, at 1% level of significance

A) there is sufficient evidence to conclude that the proportion of errors in transactions assigned to each of the 5 memory locations are not all the same

B) there is insufficient evidence to conclude that the proportions of errors in transactions assigned to each of the 5 memory locations are all different

C) there is sufficient evidence to conclude that the proportions of errors in transactions assigned to each of the 5 memory locations are all different

D) there is insufficient evidence to conclude that the proportion of errors in transactions assigned to each of the 5 memory locations are not all the same

Memory Location 1 2 3 4 5 Number of Transactions 82 100 74 92 102 Number of Reported Errors 11 12 6 9 10

Explanation / Answer

Solution:
Q1: Referring to Scenario 11-4, the degrees of freedom of the test statistic is
D) 4
Q2: Referring to Scenario 11-4, the calculated value of the test statistic is
B) 1.4999
Q3: Referring to Scenario 11-4, at 1% level of significance
D) there is insufficient evidence to conclude that the proportion of errors in transactions assigned to each of the 5 memory locations are not all the same.

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