Qnt 561 Wk 4 Individual: The Payment Time Case

The Payment Time Case Name Course Tutors Name Date The Payment Time Case Payment time case study is an application of the concepts of sampling and confidence intervals in a business problem. Stockton CA has installed a new electronic billing system designed by a consultant who hopes it will be able to reduce invoice payment time. The claim is that the billing system will be able to reduce mean invoice payment time from 39 days or more to 19.5 days (i.e. payment time reduced by 50). The experience of the consulting company is that the population standard deviation of payment time is 4.2days. The business problem is to determine whether the new billing system works as expected. The relevant statistics are as follows Population mean 39days, population standard deviation 4.2 days, claim by the consulting company 19.5 sample size 65 invoices, Population size 7823 invoices.Test hypothesis 19.5, type of test one-tailed test. Assuming the standard deviation of the payment times for all payments is 4.2 days construct a 95 and 99 confidence interval estimate to determine whether the new billing system was effective. State and interpret the 95 and 99 confidence interval and state whether or not the billing system