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This method undoubtedly displays the position of the sample size and using a bigger sample size will allow more accuracy than a smaller one. “As we will get a wider, narrower limit in a larger sample, in calculating the confidence interval” (Viljoen & Van, 2000).In this case study, there will be the utilization of data sets, sample distributions, and confidence intervals for making administrative choices. The report will give an account of the clarification of the 95% confidence interval and discuss if the new billing system is effective. By using the 95% confidence interval, it can be can determined, that 95% confident is µ ≤ 19.5 days.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 the billing system was effective.
THE TIME PAYMENT CASE3CI estimate for the meanDataPopulation Standard Deviation4.2Sample Mean18.1077Confidence Level95%Intermediate CalculationsStandard error of the Mean0.5209Z Value1.96Interval half width1.021Confidence IntervalInterval lower limit17.0867Interval upper limit19.1287Interval estimate17.0867- 19.1287This is an indicator that the new billing system is effective.