A wholesaler has recently developed a computerized sales invoicing system. Prior

Question

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 Percentage of Invoices More Than 3 1% 83% 8% 6% After implementation of the computerized system, a random sample of 500 invoices gives the following error distribution: Errors per Invoice Number of Invoices 3 More Than3 467 pi 0.83 0.08 0.06 0.02 0.01 f- E) A 2/E 6.5157 19.6000 12.0333 1.6000 2000 415 40 30 467 12 39.94900 p-value 0.0000001096 (a) Show that it is appropriate to carry out a chi-square test using these data. Each Ei2 (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)9Ho: Conclude systems Click to select)

Explanation / Answer

a) Each of the expected frequencies are greater than 5.

b) p value = 0.00 < 0.05 we reject the null hypothesis

Reject H0 and conlcude that error percentages for the computerized system differ from those for the manual system.

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