MAT 510 Week 8 Homework Assignment 7

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


Number
of Errors




-


-


-


15




+


-


-


18




-


+


-


6




+


+


-


2




-


-


+


19




+


-


+


23




-


+


+


16




+


+


+


21




 

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

 

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

 

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

 

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:
Powered by