FashionDesigns, a supplier of casual clothing to retail chains, recently has been closely monitoring the creditworthiness of the accounts receivable customers and believe that because of this close monitoring the rate of payment as measured by the average number of days in receivables has improved (thus decreased). Before the credit worthiness monitoring, FashionDesigns generally maintained an average of 35 days in receivables. Since the credit worthiness monitoring began, a random sample of 20 accounts shows a mean number of days in receivables of 30 with a standard deviation of 5 days. Note, the population variance is not known. Calculate the t-statistic and determine whether the null hypothesis is rejected or not rejected at the 0.05 level of significance.
FashionDesigns, a supplier of casual clothing to retail chains, recently has been closely monitoring the creditworthiness of the accounts receivable customers and believe that because of this close monitoring the rate of payment as measured by the average number of days in receivables has improved (thus decreased). Before the credit worthiness monitoring, FashionDesigns generally maintained an average of 35 days in receivables. Since the credit worthiness monitoring began, a random sample of 20 accounts shows a mean number of days in receivables of 30 with a standard deviation of 5 days. Note, the population variance is not known. Calculate the t-statistic and determine whether the null hypothesis is rejected or not rejected at the 0.05 level of significance.
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