Question

An
Insurance Company reports that the mean cost to process claim is
$50. An industry comparison showed this amount to be larger than
most other insurance companies, so they instituted cost-cutting
measures. To evaluate the effect of cost-cutting measure, the
company selected a random sample of claims processed last month and
determine the cost to process these selected claims. The sample
information is reported as follows: 45, 48, 52, 58, 38, 42. At the
0.05 significance level is it reasonable to conclude that the mean
cost to produce a claim is now less than $50? *

Answer #1

An
Insurance Company reports that the mean cost to process claim is
$50. An industry comparison showed this amount to be larger than
most other insurance companies, so they instituted cost-cutting
measures. To evaluate the effect of cost-cutting measure, the
company selected a random sample of claims processed last month and
determine the cost to process these selected claims. The sample
information is reported as follows: 45, 48, 52, 47, 39, 42. At the
0.10 significance level is it reasonable...

An
Insurance Company reports that the mean cost to process claim is
$50. An industry comparison showed this amount to be larger than
most other insurance companies, so they instituted cost-cutting
measures. To evaluate the effect of cost-cutting measure, the
company selected a random sample of claims processed last month and
determine the cost to process these selected claims. The sample
information is reported as follows: 45, 48, 52, 47, 39, 42. At the
0.10 significance level is it reasonable...

An
Insurance Company reports that the mean cost to process claim is
$50. An industry comparison showed this amount to be larger than
most other insurance companies, so they instituted cost-cutting
measures. To evaluate the effect of cost-cutting measure, the
company selected a random sample of claims processed last month and
determine the cost to process these selected claims. The sample
information is reported as follows: 45, 48, 52, 47, 39, 42. At the
0.10 significance level is it reasonable...

An Insurance Company reports that the mean cost to process claim
is $50. An industry comparison showed this amount to be larger than
most other insurance companies, so they instituted cost-cutting
measures. To evaluate the effect of cost-cutting measure, the
company selected a random sample of claims processed last month and
determine the cost to process these selected claims. The sample
information is reported as follows: 40, 34, 52, 41, 32, 42. At the
0.01 significance level is it reasonable...

1. 1. McFarland Insurance Company claims department reports the
mean cost to process a claim is $60. The company wants to evaluate
an instituted cost-cutting measure. The claims department selected
a random sample of 26 claims processed last month and recorded the
cost to process each claim. The sample mean was $56.77 with a
sample standard deviation of $8.75. At the 1% significance level,
is it reasonable to conclude that the mean cost to process a claim
is different from...

McFarland Insurance Company knows that the average cost to
process a claim for their company is currently $60. Given the
economic conditions they initiated cost-cutting measures. To
evaluate the effectiveness of these measures after six months,
McFarland selected at random 26 claims and determined the cost to
process them. The sample information is as follows:
$45
49
62
40
43
61
48
53
67
63
78
64
48
54
51
56
63
69
58
51
58
59
56
57
38...

Therefore, McFarland has instituted cost-cutting measures in an
attempt to reduce
this cost
and a sample of 15 claims from the prior month were randomly
selected
to
determine if these new measures have indeed caused a reduction in
process
claim
costs.
At a 95.00%
confidence level, is it reasonable to conclude that the MEAN.P to
process
a claim is
now less than $60?
45
49
62
40
43
61
48
53
67
63
78
64
48
54
51

The amount of time it takes for a given insurance company to
process each insurance claim is normally distributed. To better
gauge the processing time, a sample of 16 insurance claims were
collected. The sample mean of processing times was 5.4 days and the
sample standard deviation was 2.2 days. Based on this sample
a) Find the probability that the standard deviation of the
processing time of insurance claims is smaller than 3 days.
b) Find the probability that the...

The amount of time it takes for a given insurance company to
process each insurance claim is normally distributed. To better
gauge the processing time, a sample of 16 insurance claims were
collected. The sample mean of processing times was 5.4 days and the
sample standard deviation was 2.2 days. Based on this sample
a) Find the probability that the standard deviation of the
processing time of insurance claims is smaller than 3 days.
b) Find the probability that the...

Process Activity Analysis for a Service Company
Columbia Insurance Company has a process for making payments on
insurance claims as follows:
An activity analysis revealed that the cost of these activities
was as follows:
Receiving claim
$40,200
Adjusting claim
120,600
Paying claim
40,200
Total
$201,000
This process includes only the cost of processing the claim
payments, not the actual amount of the claim payments. The
adjusting activity involves verifying and estimating the amount of
the claim and is variable to...

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