Payment Time Case Study Qnt 561 Week 4 Assignment

Week 4: The Payment Time CaseChristina Forrester QTN/561January 17, 2018The Payment Time CaseThis paper uses statistical analyses to determine whether the new electronic billing system designed by a consultant for Stockton, CA, trucking company was effective in reducing the average bill payment from excess of 39 days to 19.5 days i.e. bill payment time reduced by 50%. A determination of whether the new billing system is effective can be reached by statistical inference from the sample data collected. The claim by the consulting company that µ < 19.5 days is a testable hypothesis. Since the test is the mean is less than 19.5 days this is a one-tailed test as the area in which we can reject the hypothesis is in only one tail.Test of hypothesis 95% and 99% confidence intervalThe hypothesis to be tested are as follows H0: μ = 19.5 and HA: µ >19.5. The null hypothesis is that the mean is equal to 19.5 days and the alternative hypothesis is that the mean is greater than 19.2 days. If the alternative hypothesis is rejected it means the mean is less or equal