Answered: The Discovery Medical Aid Board wanted…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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The Discovery Medical Aid Board wanted to find out if the mean time to settle medical claims of members differs between two major medical schemes – the Green-Aid Fund and the Explorer Blue Fund. Fifty Green-Aid Fund medical claims received were randomly selected and monitored, and the sample mean time to settlement was 20.8 days. Assume a population standard deviation of 8.2 days for settlement times of Green-Aid Fund claims. For a random sample of 45 Explorer Fund medical claims received, the average time to settlement was 18.4 days. Assume a population standard deviation of 6.3 days for settlement times of Explorer Blue Fund claims. Assume settlement times are normally distributed. Can the Discovery Medical Aid Board conclude that the Green-Aid Fund settles claims slower, on average, than the Explorer Blue Fund? Formulate the null and alternative hypothesis and test this hypothesis at the 7% significance level. What conclusion can be drawn?

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

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