Question
An insurance claims department asserts that it responds to the customer claims within 15 days. A...
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?
Homework Answers
Answer #1
Answer:
Based on the given information:
Claim: Insurance claim department responds to customer claim within 15 days
- Sample size (n) = 40
- Sample mean
= 27
days - Sample Standard deviation (s) = 6 days
= 27
daysa) 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?
- No, this interval doesnot contain the value of 15 days
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