Instruction 15-3
a Computer Used by a 24-Hour Banking Service

question 134

Multiple Choice

Instruction 15-3
A computer used by a 24-hour banking service is supposed to randomly assign each transaction to one of five memory locations.A check at the end of a day's transactions gave the counts shown in the table to each of the five memory locations,along with the number of reported errors.
$$\begin{array} { | l | l | l | l | l | l | } \hline \text { Memory Location } & 1 & 2 & 3 & 4 & 5 \\\hline \text { Number of Transactions } & 82 & 100 & 74 & 92 & 102 \\\hline \text { Number of Reported Errors } & 11 & 12 & 6 & 9 & 10 \\\hline\end{array}$$ The bank manager wanted to test whether the proportion of errors in transactions assigned to each of the five memory locations differ.
-Referring to Instruction 15-3,at 1% level of significance

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

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Definitions:

Public Good

An item or service that is available for all individuals to consume, regardless of who pays for it, characterized by its non-excludability and non-rivalry.

Market Demand

The overall amount of a product or service that every consumer in a market is ready and capable of buying at different price levels.

Negative Externalities

Unintended and uncompensated costs imposed by one party's actions on others not involved in the transaction.

Efficiency Loss

The loss of economic efficiency that can occur when the balance between supply and demand is not achieved, leading to potential welfare loss.