QNT561 Phoenix Week 4 Spicy Wings Payment Time Case Study Paper Purpose of Assignment The purpose of the assignment is to develop students’ abilities in u
QNT561 Phoenix Week 4 Spicy Wings Payment Time Case Study Paper Purpose of Assignment
The purpose of the assignment is to develop students’ abilities in using datasets to apply the concepts of sampling distributions and confidence intervals to make management decisions.
Assignment Steps
Resources: Microsoft Excel®, The Payment Time Case Study, The Payment Time Case Data Set
Review the Payment Time Case Study and Data Set.
Develop a 700-word report including the following calculations and using the information to determine whether the new billing system has reduced the mean bill payment time:
Assuming the standard deviation of the payment times for all payments is 4.2 days, construct a 95% confidence interval estimate to determine whether the new billing system was effective. State the interpretation of 95% confidence interval and state whether or not the billing system was effective.
Using the 95% confidence interval, can we be 95% confident that µ ≤ 19.5 days?
Using the 99% confidence interval, can we be 99% confident that µ ≤ 19.5 days?
If the population mean payment time is 19.5 days, what is the probability of observing a sample mean payment time of 65 invoices less than or equal to 18.1077 days?
Format your assignment consistent with APA format. Case Study – Payment Time Case Study
QNT/561 Version 9
University of Phoenix Material
Case Study – Payment Time Case Study
Major consulting firms such as Accenture, Ernst & Young Consulting, and Deloitte & Touche Consulting
employ statistical analysis to assess the effectiveness of the systems they design for their customers. In
this case, a consulting firm has developed an electronic billing system for a Stockton, CA, trucking
company. The system sends invoices electronically to each customer’s computer and allows customers to
easily check and correct errors. It is hoped the new billing system will substantially reduce the amount of
time it takes customers to make payments. Typical payment times—measured from the date on an
invoice to the date payment is received—using the trucking company’s old billing system had been 39
days or more. This exceeded the industry standard payment time of 30 days.
The new billing system does not automatically compute the payment time for each invoice because there
is no continuing need for this information. The management consulting firm believes the new system will
reduce the mean bill payment time by more than 50 percent. The mean payment time using the old billing
system was approximately equal to, but no less than, 39 days. Therefore, if µ denotes the new mean
payment time, the consulting firm believes that µ will be less than 19.5 days. Therefore, to assess the
system’s effectiveness (whether µ < 19.5 days), the consulting firm selects a random sample of 65
invoices from the 7,823 invoices processed during the first three months of the new system’s operation.
Whereas this is the first time the consulting company has installed an electronic billing system in a
trucking company, the firm has installed electronic billing systems in other types of companies.
Analysis of results from these other companies show, although the population mean payment time varies
from company to company, the population standard deviation of payment times is the same for different
companies and equals 4.2 days. The payment times for the 65 sample invoices are manually determined
and are given in the Excel® spreadsheet named “The Payment Time Case”. If this sample can be used to
establish that new billing system substantially reduces payment times, the consulting firm plans to market
the system to other trucking firms.
Copyright © 2017 by University of Phoenix. All rights reserved.
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The Payment Time Case Grading Guide
QNT/561 Version 9
Applied Business Research and Statistics
Copyright
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University of Phoenix® is a registered trademark of Apollo Group, Inc. in the United States and/or other countries.
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other company and product names are trademarks or registered trademarks of their respective companies. Use of these marks is not intended
to imply endorsement, sponsorship, or affiliation.
Edited in accordance with University of Phoenix® editorial standards and practices.
The Payment Time Case
Grading Guide
QNT/561 Version 9
Individual Assignment: Expansion Strategy and Establishing a Re-order Point
Purpose of Assignment
The purpose of the assignment is to develop students’ abilities in using datasets to apply the concepts of
sampling distributions and confidence intervals to make management decisions.
Resources Required
•
•
•
Microsoft Excel®
Payment Time Case Study
Payment Time Case Data Set
Grading Guide
Content
Met
Partially
Met
Not Met
Total
Available
Total
Earned
3
#/3
Review the Payment Time Case Study and
Data Set.
Develop a 700-word report including the
following calculations and using the
information to determine whether the new
billing system has reduced the mean bill
payment time:
• Assuming the standard deviation of the
payment times for all payments is 4.2 days,
construct a 95% confidence interval estimate
to determine whether the new billing system
was effective. State the interpretation of 95%
confidence interval AND state whether or not
the billing system was effective.
• Using the 95% confidence interval, can we
be 95% confident that µ ≤ 19.5 days?
• Using the 99% confidence interval, can we
be 99% confident that µ ≤ 19.5 days?
• If the population mean payment time is 19.5
days, what is the probability of observing a
sample mean payment time of 65 invoices
less than or equal to 18.1077 days?
Comments:
2
The Payment Time Case
Grading Guide
QNT/561 Version 9
Writing Guidelines
Met
Partially
Met
Not Met
Total
Available
Total
Earned
2
#/2
5
#/5
The paper—including tables and graphs,
headings, title page, and reference page—is
consistent with APA formatting guidelines and
meets course-level requirements.
Intellectual property is recognized with in-text
citations and a reference page.
Paragraph and sentence transitions are
present, logical, and maintain the flow
throughout the paper.
Sentences are complete, clear, and concise.
Rules of grammar and usage are followed
including spelling and punctuation.
Assignment Total
Additional comments:
#
Comments:
3
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