Professional Documents
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A year after implementation of ERP, FT Ltd. conducted a survey among its employees to test the
effectiveness of the ERP system. The result of the survey is as shown in the observed table below.
Effectiveness of FUNCTIONAL DEPARTMENTS
ERP Marketing Finance Operations Total Employees
No Improvement 60 90 50 200
in Efficiency
Improvement in 90 110 100 300
Effeciency
Total Employees 150 150 150 500
Using Chi Square Test, comment on whether the effectiveness of ERP system is
independent of the functional departments or not. Consider 2 degrees of
freedom at 5% level of significance. (Critical Value of chi-square for 2 degrees
of freedom at 5% level of significance is 5.991) (20 Marks)
Hint: Null Hypothesis- Effectiveness of ERP and Functional Departments are
independent.
Alternate Hypothesis- Effectiveness of ERP and Functional Departments are dependent.