The McFarland Insurance Company Claims Department reports the mean cost to process a claim is $60. An industry comparison showed this amount to be larger than most other insurance companies, so the company instituted cost-cutting measures. To evaluate the effect of the cost-cutting measures, the Supervisor of the Claims Department selected a random sample of 26 claims processed last month and recorded the cost to process each claim. The sample information is reported below in dollars ($). 45 49 62 40 43 61 48 53 67 63 78 64 48 54 51 56 63 69 58 51 58 59 56 57 38 76 Using a 0.05 significance level, is it reasonable to conclude that $60 is the mean cost to process a claim? Also, include a graph showing the rejection and acceptance region.

MATLAB: An Introduction with Applications
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ISBN:9781119256830
Author:Amos Gilat
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Chapter1: Starting With Matlab
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is this problem a two-tailed or one-tailed test? if one-tailed, is it right or left tailed?
The McFarland Insurance Company
Claims Department reports the mean
cost to process a claim is $60. An industry
comparison showed this amount to
be larger than most other insurance
companies, so the company instituted
cost-cutting measures. To evaluate the
effect of the cost-cutting measures, the
Supervisor of the Claims Department
selected a random sample of 26 claims
processed last month and recorded the
cost to process each claim. The sample
information is reported below in dollars ($).
45 49 62 40 43 61 48 53 67 63 78 64 48
54 51 56 63 69 58 51 58 59 56 57 38 76
Using a 0.05 significance level, is it
reasonable to conclude that $60 is the mean
cost to process a claim? Also, include a
graph showing the rejection and acceptance
region.
Transcribed Image Text:The McFarland Insurance Company Claims Department reports the mean cost to process a claim is $60. An industry comparison showed this amount to be larger than most other insurance companies, so the company instituted cost-cutting measures. To evaluate the effect of the cost-cutting measures, the Supervisor of the Claims Department selected a random sample of 26 claims processed last month and recorded the cost to process each claim. The sample information is reported below in dollars ($). 45 49 62 40 43 61 48 53 67 63 78 64 48 54 51 56 63 69 58 51 58 59 56 57 38 76 Using a 0.05 significance level, is it reasonable to conclude that $60 is the mean cost to process a claim? Also, include a graph showing the rejection and acceptance region.
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