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A Company Must Decide Which of Two Delivery Services They

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A company must decide which of two delivery services they will contract with.During a recent trial period they shipped numerous packages with each service,and have kept track of how often deliveries did not arrive on time.Here are the data: A company must decide which of two delivery services they will contract with.During a recent trial period they shipped numerous packages with each service,and have kept track of how often deliveries did not arrive on time.Here are the data:   Based on the results,the company decided to hire Fast Paks.Do you agree they deliver on time more often? Explain. A) Yes.Fast Paks only delivers 4% of its regular packages late,compared to Super Ship,who deliver 5% of its regular packages late.Additionally,Fast Paks only delivers 9% of its overnight packages late,compared to Super Ship,who delivers 16% of its overnight packages late.Fast Paks is better at delivering regular and overnight packages. B) No.Super Ship only delivers 4% of its regular packages late,compared to Fast Paks,who deliver 5% of its regular packages late.Additionally,Super Ship only delivers 9% of its overnight packages late,compared to Fast Paks,who delivers 16% of its overnight packages late.Super Ship is better at delivering regular and overnight packages. C) No.Fast Paks only delivers 0.08% of its packages late,compared to Super Ship,who delivers 0.07% of its packages late.Super Ship is better at delivering regular and overnight packages. D) Yes.Fast Paks only delivers 0.07% of its packages late,compared to Super Ship,who delivers 0.08% of its packages late.Fast Paks is better at delivering regular and overnight packages. E) No.This is an example of Simpson's paradox and unfair averaging.Since the overall percentages and the individual percentages disagree on which delivery service is better,both services can be considered equal.It cannot be determined whether Super Ship or Fast Paks deliver packages on time more often.
Based on the results,the company decided to hire Fast Paks.Do you agree they deliver on time more often? Explain.


Definitions:

Fiscal Year

A one-year period used by governments and businesses for accounting and financial reporting, which may or may not align with the calendar year.

Depreciation Expense

Spreading out the expense of a physical asset over the period it's in use.

Operating Activities

Components of a business's cash flow statement that relates to its core operations, including cash received from sales and cash paid for goods and services.

Net Income

The amount of money remaining after all operating expenses, taxes, and other costs have been subtracted from total revenue.

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