An analysis was performed for Quick Stab Collection Agency. This agency specializes on relatively small accounts and avoids risky collections such as debtor that tends to be chronically late with payments or is known to be hostile. The collection business can be very profitable. Quick Stab Collection Agency has been known to purchase small accounts for $10.00 to collect a debt of $60.00.
The profitable of this agency depend critically on the numbers of days to collect the debt, the size of the bill and the discount rate offer. QSCA has asked us to find a relationship between the size of the bill and the days collected if any. In this data set there’s variable DAYS is the number to collect the payment, and also the BILL would be the amount of the overdue bills. The data will define that the TYPE=1 for residential accounts and the 0 for commercial accounts. A 95% confidence level was chosen.
The strategy for QSCA Company it depends on how fast they can collect the debt and the amount of money received above what they paid for the account of course their intend is to get all of the amount but they realize that that may not those offering discounts in order to get payment. We will randomly select accounts from January to June that have been designated has overdue in the data set and try to establish a relationship between the size of the bill and the numbers of days to collect. In order to give management the tools need it to make decisions as to better handle accounts collections.
The purpose of this analysis was to determine if there is a relationship between size of bills and days to collect the bill, But we have to ask the question how do we determine such a relationship if any and based to the data set given is their enough information to come to a conclusive decision. There is a sentiment with in QSCA that such a relation does exist.
Analysis and Method
References: Berenson, Mark L., and David M. Levine. 1999. Basic Business Statistics. New Jersey: Prentice-Hall. Long, Lori. 1986. “Surveys from Start to Finish.” Info-Line 1-14. Microsoft( Excel. Microsoft Corporation. Version 5.0. 1997. PHStat(. Prentice-Hall. 7th Edition. 1999.