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 they 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 determined the cost to process these selected claims. The sample information is reported below.
At the .01 significance level is it reasonable to conclude that mean cost to process a claim is now less than $60?