Question
An Insurance Company reports that the mean cost to process claim is $50. An industry comparison...
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 to conclude that the mean
cost to produce a claim is now less than $50?
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An Insurance Company reports that the mean cost to process claim is $50. An industry comparison...
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Insurance Company reports that the mean cost to process claim is
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most other insurance companies, so they instituted cost-cutting
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48
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Therefore, McFarland has instituted cost-cutting measures in an attempt to reduce this cost and a sample...
Therefore, McFarland has instituted cost-cutting measures in an
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this cost
and a sample of 15 claims from the prior month were randomly
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determine if these new measures have indeed caused a reduction in
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claim
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