1. An insurance company states that 70% of its claims are settled within 60 days. A consumer group selected a random sample of 85 of the company's claims to test this statement. If the consumer group found that 65 of the claims were settled within 60 days, do they have sufficient reason to support their contention that fewer than 70% of the claims are settled within 60 days? Use 5% level of significance. Step 1: State the hypotheses. Step 2: The level of significance, one/two-tailed test, degrees of freedom Step 3: Statistical Test Step 4: Computation Step 5: Decision Rule Step 6: Reject Ho or Failed to Reject Ho Step 7: Conclusion

MATLAB: An Introduction with Applications
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Author:Amos Gilat
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Chapter1: Starting With Matlab
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1. An insurance company states that 70% of its claims are settled within 60
days. A consumer group selected a random sample of 85 of the
company's claims to test this statement. If the consumer group found that
65 of the claims were settled within 60 days, do they have sufficient
reason to support their contention that fewer than 70% of the claims are
settled within 60 days? Use 5% level of significance.
Step 1: State the hypotheses.
Step 2: The level of significance, one/two-tailed test, degrees of freedom
Step 3: Statistical Test
Step 4: Computation
Step 5: Decision Rule
Step 6: Reject Ho or Failed to Reject Ho
Step 7: Conclusion
Transcribed Image Text:1. An insurance company states that 70% of its claims are settled within 60 days. A consumer group selected a random sample of 85 of the company's claims to test this statement. If the consumer group found that 65 of the claims were settled within 60 days, do they have sufficient reason to support their contention that fewer than 70% of the claims are settled within 60 days? Use 5% level of significance. Step 1: State the hypotheses. Step 2: The level of significance, one/two-tailed test, degrees of freedom Step 3: Statistical Test Step 4: Computation Step 5: Decision Rule Step 6: Reject Ho or Failed to Reject Ho Step 7: Conclusion
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