Statistical Analysis for Quick Stab Collection Agency
Statistical Analysis for Quick Stab Collection Agency
Executive Summary The purpose of the paper is to provide a statistical analysis of overdue bills for Quick Stab Collection Agency (QSCA). The data will be taken from accounts closed over a six month period. The goal is to determine if a correlation between the type of account, the amount of the bill and the days to collection exists. To determine the existence of a correlation, regression analysis of several variables was completed. This regression analysis also included predictions. Further study also included descriptive statistical analysis, together with graphs. This analysis will show that the correlation exists between the type of account and the days to collection. It will also show that the dollar amount the bill did not play a significant role in the days until collection.
Introduction
Quick Stab Collection Agency (QSCA) is a bill collection agency specializing in small less risky accounts. QSCA buys the rights to collect debts from the original owner of the debt at a significant discount. The right to collect a $50 debt may be purchased for as little as $10. This example would indicate a profit of $40 not accounting for costs of doing business. Based on this example QSCA will need to be selective when purchasing debt as there the potential for profit loss with non-payment. In order for QSCA to remain successful they must collect the greatest amount of payments in the shortest number of days. In an effort to accomplish this task, a review of 96 accounts which were closed out in the months of January through June was completed. This review provided the data set which will be used in this analysis. This statistical analysis will attempt to answer the following questions:
What is the average dollar amount for each account type over the six month period?
What is the average collection time for each bill type?
Is there a correlation between the size of bill and the number of days
Executive Summary The purpose of the paper is to provide a statistical analysis of overdue bills for Quick Stab Collection Agency (QSCA). The data will be taken from accounts closed over a six month period. The goal is to determine if a correlation between the type of account, the amount of the bill and the days to collection exists. To determine the existence of a correlation, regression analysis of several variables was completed. This regression analysis also included predictions. Further study also included descriptive statistical analysis, together with graphs. This analysis will show that the correlation exists between the type of account and the days to collection. It will also show that the dollar amount the bill did not play a significant role in the days until collection.
Introduction
Quick Stab Collection Agency (QSCA) is a bill collection agency specializing in small less risky accounts. QSCA buys the rights to collect debts from the original owner of the debt at a significant discount. The right to collect a $50 debt may be purchased for as little as $10. This example would indicate a profit of $40 not accounting for costs of doing business. Based on this example QSCA will need to be selective when purchasing debt as there the potential for profit loss with non-payment. In order for QSCA to remain successful they must collect the greatest amount of payments in the shortest number of days. In an effort to accomplish this task, a review of 96 accounts which were closed out in the months of January through June was completed. This review provided the data set which will be used in this analysis. This statistical analysis will attempt to answer the following questions:
What is the average dollar amount for each account type over the six month period?
What is the average collection time for each bill type?
Is there a correlation between the size of bill and the number of days