Abstract #302185

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JSM 2003 Abstract #302185
Activity Number: 365
Type: Contributed
Date/Time: Wednesday, August 6, 2003 : 10:30 AM to 12:20 PM
Sponsor: Business & Economics Statistics Section
Abstract - #302185
Title: Calculating Variance for Collections Liquidation
Author(s): Bradley John Malestein*+
Companies: Capital One
Address: 456 N Kimball Place, Boise, ID, 83704-0608,
Keywords: collections ; sample size ; liquidation ; confidence interval ; variance
Abstract:

In the collection of conumer debt, liquidation, measured as total dollars collected over total outstanding balances, is typically the metric of highest interest. Agencies tasked with collecting debt run experiments to determine ways of increasing liquidation. Key to the appropriate analysis of the experimental data is an estimate of the variance of liquidation. We present one variance estimation method that has useful qualities. In addition to allowing sample size and confidence interval calculations, the method is easy to use, is grounded in the reality of collections, and readily permits "back-of-the-envelope" calculations.


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