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QUESTION 1 TABLE 12-4 A computer used by a 24-hour banking service is supposed to randomly assign each transaction to one of 5 memory locations. A check at the end of a days transactions gave the counts shown in the table to each of the 5 memory locations, along with the number of reported errors. ory Location umber of Reported Errors umber of Correct Transactions 71 92 The bank manager wanted to test whether the proportion of errors in transactions assigned to each of the 5 memory locations diffe Referring to Table 12-4, at 1% level of significance O there is sufficient evidence to conclude that the proportions of errors in transactions assigned to each of the 5 memory locations are all different O there is insufficient evidence to conclude that the proportions of errors in transactions assigned to each of the 5 memory locations are all different. o there is sufficient evidence to conclude that the proportion of errors in transactions assigned to each of the 5 memory locations are not all the same. O there is insufficient evidence to conclude that the proportion of errors in transactions assigned to each of the 5 memory locaions are not al the sam

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Answer #1

applying chi square test:

Observed Oi location 1 location 2 location 3 location 4 location 5 Total
reported 11 12 6 9 10 48
correct 71 88 68 83 92 402
Total 82 100 74 92 102 450
Expected Ei=row total*column total/grand total location 1 location 2 location 3 location 4 location 5 Total
reported 8.75 10.67 7.89 9.81 10.88 48
correct 73.25 89.33 66.11 82.19 91.12 402
Total 82 100 74 92 102 450
chi square    χ2 =(Oi-Ei)2/Ei location 1 location 2 location 3 location 4 location 5 Total
reported 0.5805 0.1667 0.4541 0.0674 0.0712 1.340
correct 0.0693 0.0199 0.0542 0.0080 0.0085 0.160
Total 0.650 0.187 0.508 0.075 0.080 1.500

for 0.01 level and 4 degree of freedom ; critical value =13.277

as test statistic 1.50 is less then critical value

correct option is :there is insufficient evidence to conclude that ...are not all the same.

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