n a recent study of enterprise resource planning? (ERP) system? effectiveness, r

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

Explanation / Answer

Ans:

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.

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

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