An insurance claims department asserts that it responds to the customer claims within 15 days. A simple random sample of 40 claims show a sample means of 27 days for the response time. The standard deviation of this sample is 6 days. a) Construct a 95% confidence interval for the mean response time for all the claims. b) Does this interval contain the value 15 of days?
Answer:
Based on the given information:
Claim: Insurance claim department responds to customer claim within 15 days
a) Construct a 95% confidence interval for the mean response time for all the claims.
In this case, since population standard deviation is not known, therefore, t-statistics will be used to build confidence interval.
Therefore, a 95% confidence interval for the mean response time is 25.081 - 28.920
b) Does this interval contain the value 15 of days?
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