state what problem you are addressing, and what recommendations you are suggesting to the manager.

You work as an accountant at the collection agency Speedy Collection. To distinguish itself from the competing collection agencies, Speedy Collection wants to establish a reputation for collecting delinquent accounts fast. The marketing department has just suggested that the company adopt the slogan: “ Under 60 days or your money back!!!!”

Being very quantitative-minded, you want to take a closer look at the numbers at Speedy Collection, so that the money-back guarantee will not adversely affecting the company. You have taken a random sample of accounts closed out in the previous year. The data set included the initial dollar amount to be collected (AMOUNT, in $), the total number of days to collect the amount in full (DAYS), and the type of the account. TYPE=’Individual’, if it is an individual account, and TYPE=’Business’, if it is a business account. After you have analyzed the data, finding the relationship between the number of days it takes to collect the money, and the initial dollar amount of the account, what do you recommend to the marketing department?

Note:In your business memo to the manager of the marketing department at Speedy Collection (maximum 2 pages), please note the following:

  1. This memo is for the Marketing Manager of Speedy Collection. Do not use jargon terms, writing an equation in the memo to the manager would not be good. Also please remember that the manager gets only the memo, and will have no access to the appendix.
  2. On the first paragraph, clearly state what problem you are addressing, and what recommendations you are suggesting to the manager.
  3. In the subsequent paragraphs report what you learn about the two groups of accounts, and providing support arguments for your recommendations.

 

In yourappendix to me, you should include allEXCEL output and your calculations. I would expect that all numbers appeared in the business memo would have appeared either in your output or in your calculations in the appendix. There is no limit on how long the appendix can be. However, your score is not necessarily proportional to the number of pages.

The memo will be graded according to if your recommendation is making business sense, and if it is supported by effective arguments. The appendix is graded according to if you have produced sufficient EXCEL outputs, and calculations in arriving at the recommendations.

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