Question

In: Statistics and Probability

An insurance company has the business objective of reducing the amount of time it takes to...

An insurance company has the business objective of reducing the amount of time it takes to approve applications for life insurance. The approval process consists of underwriting, which includes a review of the application, a medical information bureau check, possible requests for additional medical information and medical exams, and a policy compilation stage in which policy pages are generated and sent for delivery. The ability to deliver the policies to customers in a timely manner is critical to the profitability of the service. During a period of one month, a random sampling of 27 approved policies is selected, and the total processing time, in days, is collected. These data are stored in the table called Insurance.

73 19 16 64 28 28 31 90 60 56 31 56 31 56 22 18 45 48 17 17 17 91 92 63 50 51 69 16 17

A.         In the past, the mean processing time was 45 days. At the 0.05 level of significance, is there evidence that the mean processing time has changed in 45 days?

B.         What assumption about the population distribution is needed to conduct the t-test?

C.         Construct a boxplot or a normal probability plot to evaluate the assumption made in (b).

D. Do you think that the assumption needed in order to conduct the t-test in(a) is valid? Explain.

Use Excel to solve part C

Solutions

Expert Solution



Related Solutions

An insurance company has the business objective of reducing the amount of time it takes to...
An insurance company has the business objective of reducing the amount of time it takes to approve applications for life insurance. During the current month, you collect a random sample of 30 approved policies. The total processing time for these policies can be found in the Excel data file for this assignment under the tab Insurance. a. In the past, the mean processing time was 45 days. At the 0.05 level of significance, is there evidence that the mean processing...
The computer operations department has a business objective of reducing the amount of time to fully...
The computer operations department has a business objective of reducing the amount of time to fully update each subscriber’s set of messages in a special secure email system. A team designed a factorial experiment involving two factors, i.e., Interface and Media, with the goal of understanding the importance of these factors in explaining the variability in Update Time. The factor Interface has three levels, i.e., System I, System II, and System III, while the factor Media has two levels, i.e.,...
The computer operations department has a business objective of reducing the amount of time to fully...
The computer operations department has a business objective of reducing the amount of time to fully update each subscriber’s set of messages in a special secure email system. A team designed a factorial experiment involving two factors, i.e., Interface and Media, with the goal of understanding the importance of these factors in explaining the variability in Update Time. The factor Interface has three levels, i.e., System I, System II, and System III, while the factor Media has two levels, i.e.,...
2. The computer operations department had a business objective of reducing the amount of time to...
2. The computer operations department had a business objective of reducing the amount of time to fully update each subscriber’s set of messages in a special secured email system. An experiment was conducted in which 40 subscribers were selected with four difference messaging systems and two connection media types used. The subscribers were randomly assigned so that there were five subscribers in each of the eight combinations of the two factors – messaging system and media used. The updates time...
The computer operations department had a business objective of reducing the amount of time to fully...
The computer operations department had a business objective of reducing the amount of time to fully update each subscriber’s set of messages in a special secured email system. An experiment was conducted in which 40 subscribers were selected with four difference messaging systems and two connection media types used. The subscribers were randomly assigned so that there were five subscribers in each of the eight combinations of the two factors – messaging system and media used. The updates time are...
The computer operations department had a business objective of reducing the amount of time to fully...
The computer operations department had a business objective of reducing the amount of time to fully update each subscriber's set of messages in a special secured email system. An experiment was conducted in which 23 subscribers were selected and three different messaging systems were used. Eight subscribers were assigned to each system, and the update times were measured as follows: System A System B System C 38.8 41.8 36.9 42.1 36.4 36.1 45.2 39.1 39.2 34.8 28.7 35.6 48.3 36.4...
A scooter company wants to determine the average amount of time it takes an adult to...
A scooter company wants to determine the average amount of time it takes an adult to assemble an “easy to assemble” scooter. A sample of 49 times yielded an average time of 18.15 minutes. Assume that the assembly times are normally distributed and the population has a standard deviation of 5.39 minutes. a) Give a point estimate for the population mean that the sample of data is taken from. b) Find the 96% confidence interval for the mean assembly time.
The manager of a door-making company would like to estimate the amount of time it takes...
The manager of a door-making company would like to estimate the amount of time it takes for a piece of wood to be moved, cut, and packaged at two different plants. At Plant A, the manager observed 21 pieces that processed with an average time of 14.2 minutes and standard deviation of 2.6 minutes. At the second plant, the manager observed 19 pieces with an average time of 13.1 minutes with a standard deviation of 1.9 minutes. a. Test whether...
A study of the amount of time it takes a mechanic to rebuild the transmission for...
A study of the amount of time it takes a mechanic to rebuild the transmission for a 2010 Chevrolet Colorado shows that the mean is 8.4 hours and the standard deviation is 1.8 hours. If 40 mechanics are randomly​ selected, find the probability that their mean rebuild time is less than 8.9 hours. Round to four decimal places. A.0.9756 B.0.9605 C.0.4276 D.0.9589
A confidence interval is desired for the amount of time it takes a component of a...
A confidence interval is desired for the amount of time it takes a component of a product to move from one workstation to the next. The standard deviation of the population is 5 seconds. (Round your answers up to the nearest whole number.) (a) How many measurements should be made to be 99% certain that the margin of error, maximum error of estimation, will not exceed 2 seconds? (b) What sample size is required to be 99% confident for a...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT