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 0 80% More Than 3 3% 8% 5% 4% After implementation of the computerized system, a random sample of 500 invoices gives the following error distribution 3 More Than 3 Errors per Invoice Number of Invoices 462 15 10 Ei (f - E) A 2/E 9.6100 15.6250 9.0000 7.2000 6.6667 0.80 0.08 0.05 0.04 0.03 400 40 25 20 15 Chi-Square 462 15 10 5 48.10170 p-value 0.0000001096

Explanation / Answer

A)it is appropriate to carry out chi square test using this data since

Each Ei>5

B)Reject Ho ,conclude system differs.

Since pvalue is very less.

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