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1The Payment Time Case QNT/561July 30, 2018
CASE STUDY2The Payment Time Case In this case study, the payment times for 65 invoices were randomly selected from a sample of 7,823 invoices. The chosen invoices were processed during the first three months of the new system taking effect. The consulting firm feels that the new system will reduce the overall billing time by half, making the average pay time down to 19.5 days with a standard deviation of 4.2 days and the mean of 65 samples averaged out to 18.11 days. This report will show if the 95% confidence interval and determine if we can be 95% confident that µ ≤ 19.5 days. It will also determine if a 99% confidence interval and regulate if it was possible we be 99% confident that µ ≤ 19.5 days. This report will also determine if the population mean payment time is 19.5 days and what is the probability of observing a sample mean payment time of 65 invoices less than or equal to 18.1077 days will be. Assuming the standard deviation of the payment times for all payments is 4.2 days as they stated, I will estimate and determine whether