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:

Motivated Reasoning

A cognitive process where individuals form and cling to beliefs despite contrary evidence, driven by emotion or desire rather than objective evaluation.

Evidence

Information or facts that are used to support a conclusion, belief, or proposition.

Beliefs

A conviction or acceptance that something is true or exists.

Early Payment Discount

A reduction in the amount due for goods or services offered by a seller to buyers who pay their bill before a specified date.