You Are Considering Implementing a Lockbox System for Your Firm

question 62

Multiple Choice

You are considering implementing a lockbox system for your firm. The system is expected to reduce the average collection time by 1.3 days. On an average day, your firm receives 136 checks with an average value of $219 each. The daily interest rate on Treasury bills is 0.021 percent. The bank charge per check is $0.22. What is the anticipated daily cost of the lockbox system?

• A)$3.48
• B)$6.25
• C)$12.60
• D)$29.92
• E)$36.17

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Definitions:

Significance Level

The threshold at which researchers decide whether an effect or result observed in data is statistically significant, commonly set at 0.05 or 5%.

Summary Statistics

Refers to a set of descriptive indices that summarize the central tendency, dispersion, and shape of a dataset distribution, including measures such as mean, median, variance, and standard deviation.

T-Test

A statistical test used to compare the means of two groups to see if they are significantly different from each other.

Sample SD

The standard deviation of a sample, a measure of the dispersion or variability of data points within the sample.