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  3. the experiment data in below table was to evaluate

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

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Statistics

The experiment data in below table was to evaluate the effectsof three variables on invoice errors for a company. Invoice errorshad been a major contributor to lengthening the time that customerstook to pay their invoices and increasing the accounts receivablesfor a major chemical company. It was conjectured that the errorsmight be due to the size of the customer (larger customers havemore complex orders), the customer location (foreign orders aremore complicated), and the type of product. A subset of the data issummarized in the following Table.

Table: Invoice ExperimentError

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 andL. P. Provost. Improving Quality through PlannedExperimentation. New York: McGraw-Hill, 1991)

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

  1. What is the nature of the effects of the factors studied inthis experiment?
  2. What strategy would you use to reduce invoice errors, given theresults of this experiment?

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