Time

73

19

15

63

27

27

32

94

62

57

32

57

25

20

44

48

16

16

16

94

98

62

52

54

64

15

16

In certain states, savings banks are permitted to sell 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 to the bank for delivery. The ability to deliver approved policies to customers in a timely manner is critical to the profitability of this service to the bank. Using the DCOVA framework, the variable of interest is defined as the total processing time in days. Data in the accompanying table are collected by selecting a random sample of 27 approved policies during a period of one month. Complete parts a through c.

a. Compute the mean, median, first quartile, and third quartile.

Mean = _____? (Round to two decimal places as needed.)

Median = _____? (Type an integer or decimal. Do not round.)

First quartile = _____? (Type an integer or decimal. Do not round.)

Third quartile = _____? (Type an integer or decimal. Do not round.)

b. Compute the range, interquartile range, variance, standard deviation, and coefficient of variation.

Range =_____? (Type an integer or a decimal. Do not round.)

Interquartile Range =_____? (Type an integer or a decimal. Do not round.)

Sample variance = _____? (Round to two decimal places as needed.)

Sample standard deviation = _____? (Round to two decimal places as needed.)

Coefficient of variance = _____? (Round to two decimal places as needed.)

c. What would you tell a customer who enters the bank to purchase this type of insurance policy and asks how long the approval process takes? (Choose the correct bold answer)

The mean approval process takes 44.37/689.47/44 days with 50% of the policies being approved in less than 44/43/27 days. The middle 50% of the applications are approved between 16 and 63 / 19.5 and 62 days. About 68% of the applications are approved between 17.11 and 71.63 / 18.11 and 70.63