Question

2. Insurance companies want to reduce the amount of time to approve a lifetime insurance application. The approval process consists of underwriting, including reviewing applications, checking health information, possible requests for additional health information and health tests, and stages of policy formulation and delivery. The ability to approve in a timely manner is crucial for the benefits of this service. Following is the processing time until it is approved (in days) of 27 random samples of approved policies:

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

In the past, the average processing time was 45 days. Test the hypothesis at α = 0.05 that the average processing time has changed from 45 days?

Answer 1