An insurance company has the business objective of reducing the amount of time it takes to approve applications for life insurance. 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 for delivery. The ability to deliver approved policies to customers in a timely manner is critical to the profitability of this service, using the DCOVA framework you define the variable of interest as the total processing time in days. You collect the data by selecting a random sample of 27 approved policies during a period of one month. You organize the data collected in a worksheet and store them in INSURANCE:
- Calculate the
mean, median, first quartile, and third quartile.
- Calculate the
range, interquartile range, variance, standard deviation, and coefficient of variation.
- Construct a boxplot. Are the data skewed? If so, how?
- What would you tell a customer who wishes to purchase this type of insurance policy and asks how long the approval process takes?
Chapter 3 Solutions
Business Statistics: A First Course (8th Edition)
Additional Math Textbook Solutions
Statistics for Business and Economics (13th Edition)
Statistical Reasoning for Everyday Life (5th Edition)
Elementary Statistics (13th Edition)
Basic Business Statistics, Student Value Edition (13th Edition)
Introductory Statistics (2nd Edition)