A company has historically averaged 46 days on the collection of its account receivables. To

improve cash flow, the AR manager was presented with an incentive bonus if she could reduce

the average collection time. A random sample of 16 account receivables showed a mean

collection of 38 days and a standard deviation of 10 days.

Assume the collection times are

approximately normally distributed.

Is there enough evidence to conclude that the average

collection time has been reduced? Test the hypothesis at the 5% level of significa