A team in an accounting group has been working on improving the processing of invoices. The...
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A team in an accounting group has been working on improving the processing of invoices. The team is trying to reduce the cost of processing invoices by decreasing the fraction of invoices with errors. The team developed the following operational definition for a defective invoice: an invoice is defective if it has incorrect price. incorrect quantity, incorrect coding, incorrect address, or incorrect name. The team decided to pull a random sample of 100 invoices per day. If the invoice had one or more errors it was defective. The data from the last 25 days are given in the table. (10 Marks) Day Number 1 2 3 4 5 6749 10 11 12 14 15 2222322 16 17 18 19 20 21 24 25 The subgroup size is 100 Invoices Number Fraction Inspected Defective Defective (n) (ap) (p) 100 22 0.22 100 33 0.33 100 0.24 100 0.20 100 0.18 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 24 20 18 73A2A=A=AAAAAASAR 24 24 29 18 31 24 22 22 29 31 21 26 24 17 25 21 0.24 0.29 0.18 0.27 0.31 0.26 0.24 0.22 0.22 0.29 0.31 0.21 0.26 0.24 0.32 0.17 0.25 0.21 A team in an accounting group has been working on improving the processing of invoices. The team is trying to reduce the cost of processing invoices by decreasing the fraction of invoices with errors. The team developed the following operational definition for a defective invoice: an invoice is defective if it has incorrect price. incorrect quantity, incorrect coding, incorrect address, or incorrect name. The team decided to pull a random sample of 100 invoices per day. If the invoice had one or more errors it was defective. The data from the last 25 days are given in the table. (10 Marks) Day Number 1 2 3 4 5 6749 10 11 12 14 15 2222322 16 17 18 19 20 21 24 25 The subgroup size is 100 Invoices Number Fraction Inspected Defective Defective (n) (ap) (p) 100 22 0.22 100 33 0.33 100 0.24 100 0.20 100 0.18 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 24 20 18 73A2A=A=AAAAAASAR 24 24 29 18 31 24 22 22 29 31 21 26 24 17 25 21 0.24 0.29 0.18 0.27 0.31 0.26 0.24 0.22 0.22 0.29 0.31 0.21 0.26 0.24 0.32 0.17 0.25 0.21
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To calculate the average fraction defective we need to sum up the number of defective invoices and divide it by the total number of invoices inspected ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
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