In NewYork 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 in which 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. During a period of one
month, a random sample of 27 approved policies is selected, and the total processing time, in
days, is recorded and stored in Excel 'Insurance' ):
(a) In the past, the mean processing time was 45 days. At the 0.05 level of significance, is
there evidence that the mean processing time has changed from 45 days?
(b) Using Data Analysis tools / PHStat in Microsoft Excel, determine the p-value in (a) and
explain your conclusion.
(c) What assumption about the population distribution is needed in order to conduct the t test
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