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A data processing manager purchased remote terminal processing time to run speci

ID: 2958621 • Letter: A

Question

A data processing manager purchased remote terminal processing time to run special jobs at two different computer “utilities”. She wishes to sign a long-term contract with the firm whose computer causes the least delay on the average. The numbers of minutes of delayed processing per week were obtained during trial periods with each firm and are provided below:
Compu Quick 210 15 47 93 104
Dial-a-Pute 18 341 523 25 19 293 115 203
Assuming that trial experience is representative of future performance, which firm should receive the business? Substantiate your answer with appropriate calculations.

Explanation / Answer

Let X be Comp Let Y be Dial E(X)=93.8 Sx=66.34 E(Y)=192.12 Sy=171.794 c.v(X) = Sx/x/100 = 70.72% c.v(Y) = Sy/y/100 = 89.42% By using c.v. , Compu is preferred.

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