TABLE 12-4 A Computer Used by a 24-Hour Banking Service Is Supposed

question 181

Multiple Choice

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 day's transactions gave the counts shown in the table to each of the 5 memory locations, along with the number of reported errors.

The bank manager wanted to test whether the proportion of errors in transactions assigned to each of the 5 memory locations differ.
-Referring to Table 12-4, at 1% level of significance

• A) there is sufficient evidence to conclude that the proportions of errors in transactions assigned to each of the 5 memory locations are all different.
• B) there is insufficient evidence to conclude that the proportions of errors in transactions assigned to each of the 5 memory locations are all different.
• C) 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.
• D) there is insufficient evidence to conclude that the proportion of errors in transactions assigned to each of the 5 memory locations are not all the same.

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Definitions:

Closing Entries

At the close of an accounting period, recordings are made to move balances from temporary accounts to those that are permanent.

Adjustment Columns

Special columns found in accounting ledgers and worksheets used for making necessary modifications to accounts at the end of a reporting period.

Depreciation Expense

The cost allocated over the useful life of a tangible asset to account for its decline in value due to use and time.

Accumulated Depreciation

The total depreciation for a fixed asset that has been charged to expense since the asset was acquired and available for use.