Invoice errors in a billing system. In a study of invoice errors in a company’s new billing system, an auditor randomly sampled 90 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 a sample mean = $1 and standard deviation = $124 for the differences between the actual and invoice amounts. At the time that the sample was drawn, the new system had produced 1,500 invoices. Find an estimate for the true mean error per invoice of the new system. Interpret the results.
Invoice errors in a billing system. In a study of invoice errors in a company’s new billing system, an auditor randomly sampled 90 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 a sample mean = $1 and standard deviation = $124 for the differences between the actual and invoice amounts. At the time that the sample was drawn, the new system had produced 1,500 invoices. Find an estimate for the true mean error per invoice of the new system. Interpret the results.
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section: Chapter Questions
Problem 19SGR
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Invoice errors in a billing system. In a study of invoice errors in a company’s new billing system, an auditor randomly sampled 90 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 a sample mean = $1 and standard deviation = $124 for the differences between the actual and invoice amounts. At the time that the sample was drawn, the new system had produced 1,500 invoices. Find an estimate for the true mean error per invoice of the new system. Interpret the results.
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