Mathematics
QNT561 Phoenix Week 4 Spicy Wings Payment Time Case Study Paper

QNT561

University of Phoenix

Question Description

Purpose of Assignment

The purpose of the assignment is to develop students' abilities in using datasets to apply the concepts of sampling distributions and confidence intervals to make management decisions.

Assignment Steps

Resources: Microsoft Excel®, The Payment Time Case Study, The Payment Time Case Data Set

Review the Payment Time Case Study and Data Set.

Develop a 700-word report including the following calculations and using the information to determine whether the new billing system has reduced the mean bill payment time:

  • 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 or not the billing system was effective.
  • Using the 95% confidence interval, can we be 95% confident that µ ≤ 19.5 days?
  • Using the 99% confidence interval, can we be 99% confident that µ ≤ 19.5 days?
  • If the population mean payment time is 19.5 days, what is the probability of observing a sample mean payment time of 65 invoices less than or equal to 18.1077 days?

Format your assignment consistent with APA format.

Unformatted Attachment Preview

Case Study – Payment Time Case Study QNT/561 Version 9 University of Phoenix Material Case Study – Payment Time Case Study Major consulting firms such as Accenture, Ernst & Young Consulting, and Deloitte & Touche Consulting employ statistical analysis to assess the effectiveness of the systems they design for their customers. In this case, a consulting firm has developed an electronic billing system for a Stockton, CA, trucking company. The system sends invoices electronically to each customer’s computer and allows customers to easily check and correct errors. It is hoped the new billing system will substantially reduce the amount of time it takes customers to make payments. Typical payment times—measured from the date on an invoice to the date payment is received—using the trucking company’s old billing system had been 39 days or more. This exceeded the industry standard payment time of 30 days. The new billing system does not automatically compute the payment time for each invoice because there is no continuing need for this information. The management consulting firm believes the new system will reduce the mean bill payment time by more than 50 percent. The mean payment time using the old billing system was approximately equal to, but no less than, 39 days. Therefore, if µ denotes the new mean payment time, the consulting firm believes that µ will be less than 19.5 days. Therefore, to assess the system’s effectiveness (whether µ < 19.5 days), the consulting firm selects a random sample of 65 invoices from the 7,823 invoices processed during the first three months of the new system’s operation. Whereas this is the first time the consulting company has installed an electronic billing system in a trucking company, the firm has installed electronic billing systems in other types of companies. Analysis of results from these other companies show, although the population mean payment time varies from company to company, the population standard deviation of payment times is the same for different companies and equals 4.2 days. The payment times for the 65 sample invoices are manually determined and are given in the Excel® spreadsheet named “The Payment Time Case”. If this sample can be used to establish that new billing system substantially reduces payment times, the consulting firm plans to market the system to other trucking firms. Copyright © 2017 by University of Phoenix. All rights reserved. 1 PayTime 22 19 16 18 13 16 29 17 15 23 18 21 16 10 16 22 17 25 15 21 20 16 15 19 18 15 22 16 24 20 17 14 14 19 15 27 12 17 25 13 17 16 13 18 19 18 14 17 17 12 23 24 18 16 16 20 15 24 17 21 15 14 19 26 21 The Payment Time Case Grading Guide QNT/561 Version 9 Applied Business Research and Statistics Copyright Copyright © 2017, 2015, 2014, 2013, 2012, 2011, 2010, 2009, 2008 by University of Phoenix. All rights reserved. University of Phoenix® is a registered trademark of Apollo Group, Inc. in the United States and/or other countries. Microsoft®, Windows®, and Windows NT® are registered trademarks of Microsoft Corporation in the United States and/or other countries. All other company and product names are trademarks or registered trademarks of their respective companies. Use of these marks is not intended to imply endorsement, sponsorship, or affiliation. Edited in accordance with University of Phoenix® editorial standards and practices. The Payment Time Case Grading Guide QNT/561 Version 9 Individual Assignment: Expansion Strategy and Establishing a Re-order Point Purpose of Assignment The purpose of the assignment is to develop students’ abilities in using datasets to apply the concepts of sampling distributions and confidence intervals to make management decisions. Resources Required • • • Microsoft Excel® Payment Time Case Study Payment Time Case Data Set Grading Guide Content Met Partially Met Not Met Total Available Total Earned 3 #/3 Review the Payment Time Case Study and Data Set. Develop a 700-word report including the following calculations and using the information to determine whether the new billing system has reduced the mean bill payment time: • 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 or not the billing system was effective. • Using the 95% confidence interval, can we be 95% confident that µ ≤ 19.5 days? • Using the 99% confidence interval, can we be 99% confident that µ ≤ 19.5 days? • If the population mean payment time is 19.5 days, what is the probability of observing a sample mean payment time of 65 invoices less than or equal to 18.1077 days? Comments: 2 The Payment Time Case Grading Guide QNT/561 Version 9 Writing Guidelines Met Partially Met Not Met Total Available Total Earned 2 #/2 5 #/5 The paper—including tables and graphs, headings, title page, and reference page—is consistent with APA formatting guidelines and meets course-level requirements. Intellectual property is recognized with in-text citations and a reference page. Paragraph and sentence transitions are present, logical, and maintain the flow throughout the paper. Sentences are complete, clear, and concise. Rules of grammar and usage are followed including spelling and punctuation. Assignment Total Additional comments: # Comments: 3 ...
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Final Answer

Kindly see attached paper corresponding to the analysis of the Spicy Wings case study. I've also included a plagiarism report in case you need to present it to your University

Running head: SPICY WINGS CASE STUDY

1

SPICY WINGS CASE STUDY
(NAME)
(COURSE)
(DATE)

SPICY WINGS CASE STUDY

2

Introduction
After obtaining his MBA, John Tyler opened a fast food restaurant in a little town. When
analyzing the market, he observed that if he was able of guaranteeing a 30 minutes delivery he
would gain a significant portion of the local market share, since none of the possible competitors
was able of keeping up with such a short delivery time during the busy hours of Saturday
evening. Before embarking on such a project, John has requested a consulting firm to conduct a
hypothesis test to verify if he would be able of satisfying the 30 minutes delivery according to
his current delivery times.

Description of the available data
John Tyler has recorded the time he needs to pick up a new order and drive it in his Spicy
Wings fast food restaurant for 200 orders. These data have then been used to compute the total
delivery time as the sum of the pick-up time and the drive time.
An initial descriptive statistical analysis has been carried out of the total delivery time in
which basic parameters such as the average, standard deviation, minimum, maximum, quartiles
and median have been computed. The data obtained from such analysis is summarized in table 1.

SPICY WINGS CASE STUDY

3

Table 1. Results obtained from the descriptive statistical analysis of the delivery times
Parameter
Average
Standard deviation
Sample size
Minimum
1st quartile
Median
3rd quartile
Maximum
5-number summary

Result (min)
22.52
4.87
200
8.75
19.60
22.90
26.38
31.9
8.75, 19.60, 22.90, 26.38, 31.9

Hypothesis testing
According to the descriptive statistical analysis of the delivery time, it would seem that
John is able of complying with the 30 minutes delivery time in most of the cases. However, in
order to be sure, a hypothesis test has been carried out. The hypotheses being tested are
formulated...

strongboss5 (3555)
UIUC

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