Discuss the mean-media-mode, standard deviation

Question

Assignment:

Overdue Bills

Quick Stab Collection Agency (QSCA), is a bill-collecting agency. The company specializes in collecting small accounts. The marketing department has just suggested that QSCA adopt the slogan "Under 60 days or your money back!!!!!" At the last staff meeting in which this slogan was proposed, the marketing department was asked how it arrived at the number 60. You found the reply unsatisfactory at best: "Well, uh, 60 sounded like a nice round number." Since you work as an accountant at QSCA, you look at account balances all of the time. In fact, you suspect that the number of days to collect the payment is related to the size of the bill. If this is the case, you may be able to estimate how quickly certain accounts are likely to be collected. You've taken a random sample of accounts closed out during the months of January through June. The data set includes the initial size of the account and the total number of days to collect payment in full. Because QSCA deals in both household and commercial accounts in about the same proportion, you've collected an equal number from both groups.

The first 48 observations in the data set are residential accounts and the second 48 are commercial accounts.

Variable Label

LATE Number of days payment is overdue.

BILL Dollar amount of the overdue bill.

1. What must you do during data preparation to enable you to compare commercial and household accounts?

2. Is the "60-day" money-back guarantee supported?

Managerial Dilemma:

Manager needs more information about customer's accounts that overdue.

Research Question:

Is there a difference in the "60-day" money back guarantee if the customer account is commercial or residential?

Hypothesis:

Null Hypothesis: µ≤60 days (There is no difference in the number of days over due accounts are collected for residential and commercial)

Alternative Hypothesis: µ>60 days( Commerical accounts take longer to collect than residential accounts)

Data Collection:

o The variables in the data are the number of days and the dollar amount of the bills.

o Discuss the mean, media, mode, standard deviation of all the days for the accounts for each customer.

Residential

Commercial

Statistical Analysis

o One-sided, two population testing will be used

o Discussed the significance level used and why we used this

o Include all the supportive numbers from the QUAC Utility.

ID	LATE	BILL
1	16	79
2	47	264
3	22	97
4	47	289
5	47	288
6	21	100
7	44	250
8	27	140
9	19	97
10	48	299
11	16	80
12	50	311
13	11	46
14	17	110
15	25	146
16	37	201
17	22	95
18	38	205
19	24	150
20	31	158
21	51	310
22	40	197
23	34	180
24	30	149
25	39	211
26	5	90
27	11	60
28	33	187
29	42	220
30	15	70
31	48	273
32	10	50
33	29	162
34	25	153
35	43	225
36	42	210
37	30	154
38	41	215
39	49	301
40	43	240
41	36	205
42	6	95
43	52	302
44	19	98
45	26	150
46	36	179
47	13	75
48	35	199
49	74	150
50	47	289
51	39	310
52	47	299
53	53	240
54	71	179
55	82	90
56	83	95
57	90	50
58	92	80
59	71	158
60	80	110
61	83	95
62	57	220
63	84	100
64	63	211
65	73	149
66	60	205
67	50	302
68	91	70
69	49	250
70	67	201
71	83	97
72	83	98
73	81	97
74	74	153
75	69	150
76	65	146
77	70	154
78	60	197
79	53	273
80	63	205
81	67	199
82	99	60
83	60	210
84	85	75
85	79	140
86	68	187
87	70	162
88	47	311
89	51	264
90	69	180
91	44	301
92	47	288
93	55	225
94	86	79
95	94	46
96	59	215