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A wholesaler has recently developed a computerized sales invoicing system.


A wholesaler has recently developed a computerized sales invoicing system. Prior to implementing this system, a manual system was used. Historically, the manual system produced 87% of invoices with 0 errors, 8% of invoices with 1 error, 3% of invoices with 2 errors, 1% of invoices with 3 errors, and 1% of invoices with more than 3 errors.

After implementation of the computerized system, a random sample of 500 invoices showed 479 invoices with 0 errors, 10 invoices with 1 error, 8 invoices with 2 errors, 2 invoices with 3 errors, and 1 invoice with more than 3 errors.

Tasks:

  • Create appropriate null and alternative hypotheses.
  • Justify the appropriate chi-square test to determine whether the error percentages for the computerized system differ from the normal system.
  • The chi-square statistic and p-values are 35.22 and < 0.0001. Interpret the p value for an accept/reject decision regarding the hypothesis. Choose the standard level of significance.
  • State your conclusion.

Submission Details:

  • Submit a Microsoft Word document that contains your responses to assignment questions, using APA style.
  • Name your document SU_BUS7200_W4_ LastName_FirstInitial.doc
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