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Customer Size: Small (-), Large (+) Customer Location: Foreign (-), Domestic (+) Product Type: Commodity (-), Specialty (+) Experiment 1 2 3 4 5 6
Customer Size: Small (-), Large (+) Customer Location: Foreign (-), Domestic (+) Product Type: Commodity (-), Specialty (+) Experiment 1 2 3 4 5 6 7 8 Customer Size + + + + Table: Invoice Experiment Error 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 (+) Table: Invoice Experiment Error Experiment 1 2 3 4 5 6 7 8 Customer Size Customer Location Product Type + + + + + + + + + + + + sum+ sumave + aveeffect 64 56 16 14 2 45 75 11.25 18.75 7.5 79 41 19.75 10.25 9.5 Number of Errors 15 18 6 2 19 23 16 21 Customer Size: Small (-), Large (+) Customer Location: Foreign (-), Domestic (+) Product Type: Commodity (-), Specialty (+) Table: Invoice Experiment Error Experiment 1 2 3 4 5 6 7 8 Customer Size + + + + Customer Location + + + + Product Type + + + + sum+ sumave + aveeffect 64 56 16 14 2 45 75 11.25 18.75 7.5 Interaction Effects x1x3 x2x3 79 41 19.75 10.25 9.5 x1x2 Location Size + + + + + + + + x1x2x3 - + + + + + + - + - + ProductType - + + Size ProductType - + + Location Customer Location & Product Type 10.5 Foreign Location 12 Specialt y 10 Domestic Location 8 - Commodit y 6 Commodit y 4 8.5 + Customer Size # Errors 9 8 Specialt y 10 9.5 # Errors + + Customer Size & Product Type Customer Size & Location 20 19 18 17 16 # Errors 15 14 13 12 11 10 Number of Errors 15 18 6 2 19 23 16 21 2 - + Customer Size 0 - + Customer Location 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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