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Math Help - Applied Statistics

  1. #1
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    Applied Statistics

    The web-based company Oh Baby! Gifts has a goal of processing 95 percent of its orders on the same day they are received. If 485 out of the next 500 orders are processed on the same day, would this prove that they are exceeding their goal, using a=.025? (see story.news.yahoo.com accessed June 25, 2004.)


    Any help would be greatly appreciated-

    JorJasKi
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  2. #2
    Grand Panjandrum
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    Quote Originally Posted by JorJasKi View Post
    The web-based company Oh Baby! Gifts has a goal of processing 95 percent of its orders on the same day they are received. If 485 out of the next 500 orders are processed on the same day, would this prove that they are exceeding their goal, using a=.025? (see story.news.yahoo.com accessed June 25, 2004.)


    Any help would be greatly appreciated-

    JorJasKi
    If we knew that the probability that an order was processed on the same day was independent of the number of orders recieved on the day it was recieved, or the number already processed. Then or 500 orders recieved under the null hypotheseis that 95% are processed then we can construct a test based on the assumption that the number of these processed on thesame day ~B(500,0.95).

    However the assumptions are inplausible, and without further knowlege or a better model of the order processing system no sensible answer can be given.

    RonL
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