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

ID: 2948971 • Letter: A

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:


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

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

Each Ei ?                 

Errors per Invoice 0 1 2 3 More Than 3 Percentage of Invoices 87% 6% 4% 2% 1%

Explanation / Answer

a) For chi - square test to be appropriate, each expected frequency must be greater than or equal to 5.

Hence,

Each Ei > 5

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