PART A

Sebastian Schnauzer manages workflow in Accounts Receivable (AR) at BBT. Much of customer billing is automated, but there are exceptions. Exceptions require manual processing by AR staff. Sebastian would like to improve processing output. After extensive analysis, he has determined that a pre-processing step will increase processing output. To test his theory, he ran a pilot test over the past two Mondays. On the first Monday (two weeks ago), the staff used the old process. On last Monday, they used the new process that included the new preprocessing step. Time to complete each test was held constant at 7.5 hours. The data in the accompanying Excel file shows the number of records that each worker processed during each test.

1. Compare the mean of each test using a one-tailed t-test . Based on this experiment, do you think that preprocessing is helpful? Hint: Assume unequal variances.
2. Use a one-tailed paired t-test to determine if the method using preprocessing (test 2) is significantly better than the old method. Based on this experiment, do you think that preprocessing is helpful?
3. What do you recommend? If the tests gave different results, explain why.

Number of records processed:
	Test 1	Test 2
Sally	460	475
William	259	298
Renaldo	248	273
Bryant	304	315
Cecilia	366	389
Walker	365	387
Miriam	386	400
Edna	363	367
Reba	273	295
Wyatt	310	342
Ariana	317	355
Wilkes	323	337

Part B

BBT Managers are concerned that morale is suffering after the CEO created a number of new restrictive policies. One of the main complaints is lack of transparency. Employees believe that the CEO is making life harder on them out of spite rather than for sound business reasons. Managers believe that improving communication will help. They are conducting an experiment to see if sending a summary report that contains aggregate performance metrics and customer complaint statistics will improve employee understanding of the problems the CEO is facing. To test this hypothesis, employees in two similarly-sized departments were selected for the experiment. Department 1 is the control group. They did not receive the report. Department 2 is the Treatment group. They did receive the report.

Survey Question

Employee morale is excellent at BBT.

(strongly disagree)1 2 3 4 5 6 7 (strongly disagree)

1. Does the report significantly improve morale? Use ANOVA to ascertain whether or not the treatment worked. In your answer, please interpret the results and comment on the overall impact of the plan.

Instructions: Use the data in the accompanying file to answer the four questions. Put the answers to the questions in the textboxes provided.