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

question 30

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, the calculated value of the test statistic is

• A) -0.1777.
• B) -0.0185.
• C) 1.4999.
• D) 1.5190.

Identify the factors contributing to favorable or unfavorable variances.

Learn how to compute variances using standard cost and actual data.

Gain insight into the operational efficiency of production processes through variance analysis.

Understand the role of variance analysis in budgeting and financial planning.

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Definitions:

Possesses

The act of having physical control or ownership of something, indicating a legal relationship between a person and the object being possessed.

Negotiability

The characteristic of a financial instrument that allows it to be transferred or assigned from one party to another, ensuring the receiving party obtains a good title.

Negotiable Instrument

A written order or unconditional promise to pay a fixed sum of money that is transferable from one party to another.

Movability

The quality of a negotiable instrument that ensures it is mobile and available.