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 the policy pages ate generated and sent for delivery. The ability to deliver approved policies to customers in a timely manner is critical to the profitability of this service. During a period of one month. a random sample of 27 approved policies is selected. and the total processing time. in days, is collected. These data, stored in Insurance, are:
a. 1n the past, the
b. What assumption about the population distribution is needed in order to conduct the t test in (a)?
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.
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Basic Business Statistics, Student Value Edition (13th Edition)
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