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Solve: Using the Confidence Interval for the Mean

In New York State, savings banks are permitted to sell a form of life insurance called the savings bank life insurance (SBLI). The approval process consists of underwriting, which includes a review of the application, a medical information bureau check, possible requisites for additional medical information and medical exams, and a policy compilation state 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 the service to the bank. During a period of one month, a random sample of 27 approved policies was selected, and the total processing time, in days, was shown below and stored in insurance:

73 19 16 64 28 28 31 90 60 56 31 56 22 18
45 48 17 17 17 91 92 63 50 51 69 16 17

Construct a 95% confidence interval estimate for the population mean processing time.

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Solution:
95% confidence interval is given by
Mean +/- t(critical value)*SE
- Where t (critical ...

Solution Summary

This solution is comprised of a detailed explanation of a 95% confidence interval computation for the mean. In this solution, a step-by-step explanation of this complicated topic provides students with a clear perspective of how to utilize the 95% confidence interval for the mean. A Word document is also attached to this solution and contains charts with information related to this problem.

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