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MAT 510 ? Homework Assignment

 

Homework Assignment 7

 

Due in Week 8 and worth 30 points

 

The experiment data in below table was to evaluate the effects of three variables on invoice errors for a

 

company. Invoice errors had been a major contributor to lengthening the time that customers took to pay

 

their invoices and increasing the accounts receivables for a major chemical company. It was conjectured

 

that the errors might be due to the size of the customer (larger customers have more complex orders), the

 

customer location (foreign orders are more complicated), and the type of product. A subset of the data is

 

summarized in the following Table.

 

Table: Invoice Experiment Error

 

Customer Size

 


 

Customer Location

 


 

Product Type

 


 

+

 

+

 

+

 

+

 

+

 

+

 

+

 

+

 

+

 

+

 

+

 

+

 

Customer Size: Small (-), Large (+)

 

Customer Location: Foreign (-), Domestic (+)

 

Product Type: Commodity (-), Specialty (=)

 


 

Number of Errors

 

15

 

18

 

6

 

2

 

19

 

23

 

16

 

21

 


 

Reference: Moen, Nolan, and Provost (R. D. Moen, T. W. Nolan and L. P. Provost. Improving Quality

 

through Planned Experimentation. New York: McGraw-Hill, 1991)

 

Use the date in table above and answer the following questions in the space provided below:

 

1. What is the nature of the effects of the factors studied in this experiment?

 

2. What strategy would you use to reduce invoice errors, given the results of this experiment?

 


 

Type your answers below and submit this file in Week 8 of the online course shell:

 


 

 


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