**The Payment Time Case 2**

**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.

**Category:**Mathematics, General Mathematics

**Chellaanik**

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