Question: In New York state, savings banks are permitted to sell a form of life insurance called Savings Bank Life Insurance (SBLI). The approval process consists of underwriting, which includes a review of the application, a medical information bureau check, possible requests for additional medical information and medical exams, and a policy compilation stage where the policy pages are generated and sent to the bank for delivery. The ability to deliver approved policies to customers in a timely manner is critical to the profitability of this service to the bank. During a period of 1 month, a random sample of 27 approved policies was selected INSURANCE and the total processing time in days recorded:

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

1. Construct a 95% confidence interval estimate of the mean processing time.
2. What assumption must you make about the population distribution in (a)?
3. Do you think that the assumption made in (b) is seriously violated? Explain.

Price: $2.99

Solution: The downloadable solution consists of 3 pages
Deliverable: Word Document