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How to calculate the reasonable allowed number of mistakes

 
 
Reply Mon 7 Nov, 2011 12:23 pm
I'm working on figuring out what would be reasonable % of mistakes made when my coworker is processing invoices. She has to enter 7 fields from the invoices (Invoice amount, number, project number, department, account etc). My task is to figure out statistically, what would be a reasonable number of mistakes my co-worker is allowed to make. I suspect this would have to do with the Margin of Error calculations. I just do not know how to apply the variables that are known: 1) sample size 2)number of variables she has to enter 3)number of mistakes she makes to derive the threshhold which is acceptable number of mistakes for someone with 5-10 yeqars of experience of invoice processing.
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Type: Question • Score: 1 • Views: 1,263 • Replies: 3
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Butrflynet
 
  1  
Reply Mon 7 Nov, 2011 02:07 pm
@mshatalinarusso,
There are four sample formulas demonstrated here. Would one of them fit the circumstances?

Guide to Computing Margins of Error for Percentages and Means
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JPB
 
  1  
Reply Mon 7 Nov, 2011 03:51 pm
@mshatalinarusso,
define "reasonable". What's the cost to the company in terms of time and $$$ when she makes a mistake? Are each of the variables equally important? Is this a homework assignment or a real life application that you've been asked to summarize?

You can take each record (invoice) and score it as a binomial variable based on all 7 entries (mistake/no mistake) and then calculate a proportion and binomial confidence interval around that proportion, but you still need to define "reasonable".

Or, you could weight each of the variables based on some factor of cost (time/$$$) when it's wrong and look at the weighted average of mistakes made. What's the standard you're holding her against? If perfection is ostensibly required and you discover that she's making mistakes 20-30% of the time then you don't need statistics to tell you that you've got a problem. OTOH, if this is your benchmark for future employees then you want to be careful in establishing the definition of "reasonable".
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markr
 
  1  
Reply Tue 8 Nov, 2011 01:39 am
@mshatalinarusso,
It doesn't make sense to me to compute what is reasonable for a typical person with 5-10 years of experience based solely on data for a single person. I can see using her data to determine if she's improving or getting worse, but how do you use her data to compute the norm for the general population?
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