Executive Summary

Exploratory analysis was performed and it was found out that linear regression is appropriate to predict the amount of days to collect based on the bill size, but the behavior is radically different for residential accounts than for commercial accounts. In fact, the time to collect tends to increase for bigger bills for residential accounts, and the time to collect tends to decrease for bigger bills for commercial accounts. The regression models are:

Late = 2.2096 + 0.1657*Bill

for residential accounts and

Late = 101.7582 – 0.19096*Bill

for commercial accounts. This models explains a big deal of variation in Late (93.29% and 95.65% respectively)

Using the mean bill for each group (which is 171.3 for both groups), we find the typical time to collect is 30.6 days for residential accounts, but 69.05 for commercial accounts, which means that the 60 days is not appropriate to commercial accounts

Price: $12.57

Solution: The downloadable solution consists of 8 pages, 457 words and 5 charts.
Deliverable: Word Document