In certain states savings banks are permitted to sell life
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 Define, Collect, Organize, Visualize, and Analyze steps first discussed on page 2, 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:
a. Compute the mean, median, first quartile, and third quartile.
b. Compute the range, interquartile range, variance, standard ­deviation, and coefficient of variation.
c. Construct a boxplot. Are the data skewed? If so, how?
d. 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?
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