Question

2. The ages in days of samples of accounts receivable from two supplier companies 1 and 2, both of which extend 30 days credit, are shown below:

1                                                                      2

15                    15                                            30                    40

15                    30                                            35                    40

20                    40                                            35                    45

25                    45                                            35                    45

35                    45                                            40                    50

Using means and standard deviations of the two sets of data, compare the profile of the ages of accounts receivable of the two companies.

Answer 1

Here,

For sample 1 :

Mean = 28.5 and standard deviation = 12.26

For sample 2 :

Mean = 39.5 and standard deviation = 5.99

For second supplier company, the ages of accounts are about 39.5 with a small spread of 5.99 around the mean.

For first supplier company, the ages of accounts are around the mean 28.5 with a comparatively wider spread than second supplier.