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Invoice errors in a billing system. In a study of invoice

Statistics for Business and Economics | 12th Edition | ISBN: 9780321826237 | Authors: James T. McClave, P. George Benson, Terry T Sincich ISBN: 9780321826237 51

Solution for problem 90E Chapter 6

Statistics for Business and Economics | 12th Edition

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Statistics for Business and Economics | 12th Edition | ISBN: 9780321826237 | Authors: James T. McClave, P. George Benson, Terry T Sincich

Statistics for Business and Economics | 12th Edition

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Problem 90E

Problem 90E

Invoice errors in a billing system. In a study of invoice errors in a company’s new billing system, an auditor randomly sampled 35 invoices produced by the new system and recorded actual amount (A), invoice amount (I), and the difference (or error), x = (A - I). The results were = $1 and s = +124. At the time that the sample was drawn, the new system had produced 1,500 invoices. Use this information to find an approximate 95% confidence interval for the true mean error per invoice of the new system. Interpret the result.

Step-by-Step Solution:

Solution :

Step 1 of 1:

The given problem explain about invoice errors in a billing system.

Let N denotes the population size is 1500 invoices.

Let n denotes the sample size is 35 invoices.

Let  denotes the sample mean of invoices is $1 and

Let s denotes the standard deviation of the invoices is $124.

Our goal is:

We need to find an approximate 95% confidence interval for the true mean error per invoice of the new system.

Now we have to find an approximate 95% confidence interval for the true mean error per invoice of the new system.

Now we have to find the approximate 95% confidence interval.

Then the estimated standard error is

We know that n, N, and s.

20.7137

Therefore, the estimated standard error is 20.7137.

Then the approximate 95% confidence interval is

We know that= 1 and = 20.7137.

 =

   =

   = (1-41.43, 1+41.43)

   = (-40.43, 42.43)

Hence a 95% confidence interval for the true mean error per invoice of the new system is between -$40.43 and $42.43.


Step 2 of 1

Chapter 6, Problem 90E is Solved
Textbook: Statistics for Business and Economics
Edition: 12
Author: James T. McClave, P. George Benson, Terry T Sincich
ISBN: 9780321826237

This full solution covers the following key subjects: system, new, invoice, Billing, produced. This expansive textbook survival guide covers 15 chapters, and 1631 solutions. The answer to “Invoice errors in a billing system. In a study of invoice errors in a company’s new billing system, an auditor randomly sampled 35 invoices produced by the new system and recorded actual amount (A), invoice amount (I), and the difference (or error), x = (A - I). The results were = $1 and s = +124. At the time that the sample was drawn, the new system had produced 1,500 invoices. Use this information to find an approximate 95% confidence interval for the true mean error per invoice of the new system. Interpret the result.” is broken down into a number of easy to follow steps, and 95 words. Since the solution to 90E from 6 chapter was answered, more than 332 students have viewed the full step-by-step answer. This textbook survival guide was created for the textbook: Statistics for Business and Economics , edition: 12. The full step-by-step solution to problem: 90E from chapter: 6 was answered by , our top Business solution expert on 07/21/17, 05:42AM. Statistics for Business and Economics was written by and is associated to the ISBN: 9780321826237.

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