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Running Head: PAYMENT TIME CASE 1

The document discusses different billing system options with varying confidence interval ranges and their associated payment times and gains/losses. Four systems were tested with confidence interval ranges of 95% and 99%. The system with a 95% confidence interval range had the highest gain of $20.146 but also the highest loss of $16.07. While another system with a 99% confidence interval range had a more modest gain of $18.515 but also a lower loss of $17.7. The document recommends considering the payment times, gains, and losses to determine the best billing system for a given company.

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58 views5 pages

Running Head: PAYMENT TIME CASE 1

The document discusses different billing system options with varying confidence interval ranges and their associated payment times and gains/losses. Four systems were tested with confidence interval ranges of 95% and 99%. The system with a 95% confidence interval range had the highest gain of $20.146 but also the highest loss of $16.07. While another system with a 99% confidence interval range had a more modest gain of $18.515 but also a lower loss of $17.7. The document recommends considering the payment times, gains, and losses to determine the best billing system for a given company.

Uploaded by

skw
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Running head: PAYMENT TIME CASE 1

Payment Time Case

Chrystal Carter

QNT 561

April 10, 2017

Russell Heigl
PAYMENT TIME CASE 2

Payment Time Case

Billing systems can range from company to company. Changing the current billing

system to a new billing system will create chaos. The goal should be a smooth transition, along

with an ease for consumers. Creating the following for each firm will produce the best option.

Confidence interval range holds values and gives a sample statistic. The downside to this

is there may be an unknown population with this. First, understanding how these results are

tested and applied, means to know what going on to obtain the results (NIST). Interval estimates

are occasion, this means that each true population’s parameter will be accurate (NIST). Below

there are two different confidence range settings, 95% and 99%, these are presented on

difference pay times than before.

Wanting a confidence range at 95%, has a gain and a loss. The gain would be 20.146 then

a loss of 16.07. Pay time would be 22, 19, 16, and 18. This results in a better gain for the billing

system over any other type presented.

16 Confidence range at 95%

25
20
15
10
5
0
- +
18.10769231
2.037970283
4.2
65
PAYMENT TIME CASE 3

Second set has a confidence range at 99%, but the count would be 17, 15, 23, and 18.

Confidence range could have a loss of 17.7 but a gain at 18.515. This type of billing system

ranks third in this system test.

16 Confidence range at 99%

18.6
18.4
18.2
18
17.8
17.6
17.4
17.2
- +
18.10769231
0.407337759
4.2
65

The third system tested had a confidence range at 95%. With this the pay time is 22, 17,

25, and 15. For this has the greatest gain out of all the test ran, it also has the greatest loss. The

gain could be 20.461 but the loss would be 15.754.


PAYMENT TIME CASE 4

20 Confidence range at 95%

25
20
15
10
5
0
- +
18.10769231
2.353245383
3.961230384
65

The last system tested was also at 99% with the pay time at 15, 19, 18, and 15.

The gain was not great but neither was the loss. The gain was 183575 and the loss is 17.637. As

the confidence range at 99% prior, the gain is a little higher but the loss is greater as well.

16 Confidence range at 99%

18.6
18.4
18.2
18
17.8
17.6
17.4
17.2
17
- +
18.10769231
0.47035313
3.961230384
65

Looking at the charts, ranges, pay times, and percentages will show a way to find the best

value to your company. Pay times vary, but they do have a great positive and could lead to a gain
PAYMENT TIME CASE 5

for the company. If looking to have a gain the first chart would lead to that, but if looking to keep

the gain and loss together, chart two would be the second.

Each range is different, but each range holds a value to the other. Finding the one that

best suits your companies and your values is important.

Reference

NIST. (n.d.). What are confidence intervals? Retrieved April 10, 2017, from

http://itl.nist.gov/div898/handbook/prc/section1/prc14.htm

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