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Running head: THE PAYMENT TIME CASE1The Payment Time CaseNameQNT561DateInstructor
THE PAYMENT TIME CASE2The Payment Time CaseA Stockton, CA, trucking company updated its billing system to send invoiceselectronically to each of its customer’s computers and allows them to check and correct anyerror(s). This new system saves time and effort to both the trucking company and its customers.However, this new billing system does not automatically compute the payment time for theinvoices because there is no continuing need for this information. The new system is alleged todecrease the mean bill payment time by more than 50 percent. With the prior system the meanpayment time was 19.5. To calculate and verify if this new system is achieving its goal a randomsample of 65 invoices from the first three months after the implementation of the new systemwhere used. Standard deviation of the payment.Assuming the standard deviation of the payment times for all payments is 4.2 days. At95% confidence interval the new billing system is effective. At 95% confidence interval the