Reference no: EM13578303

Question: Late payment of medical claims can add to the cost of health care. An article (M. Freudenheim, "The Check Is Notin the Mail," The New York Times, May 25, 2006, pp. C1,C6) reported that for one insurance company, 85.1% of theclaims were paid in full when first submitted. Suppose thatthe insurance company developed a new payment system inan effort to increase this percentage. A sample of 200 claimsprocessed under this system revealed that 180 of the claimswere paid in full when first submitted.

a. At the 0.05 level of significance, is there evidence that the population proportion of claims processed under thisnew system is higher than the article reported for the previoussystem?

b. Compute the p-value and interpret its meaning.