Posted: April 29th, 2019

Insurance Claim Approval Times, statistics homework help

Question description

The data in the table below is from a study
conducted by an insurance company to determine the effect of changing the
process by which insurance claims are approved. The goal was to improve
policyholder satisfaction by speeding up the process and eliminating some
non-value-added approval steps in the process. The response measured was the
average time required to approve and mail all claims initiated in a week. The
new procedure was tested for 12 weeks, and the results were compared to the
process performance for the 12 weeks prior to instituting the change.
  Table: Insurance Claim Approval
Times (days)

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  Old Process

  New Process

Week

Elapsed Time

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Week

Elapsed Time

1

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31.7

13

24

2

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27

14

25.8

3

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33.8

15

31

4

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30

16

23.5

5

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32.5

17

28.5

6

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33.5

18

25.6

7

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38.2

19

28.7

8

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37.5

20

27.4

9

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29

21

28.5

10

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31.3

22

25.2

11

38.6

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23

24.5

12

39.3

24

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23.5

Use the date in table above and answer the
following questions in the space provided below:
1. 
What
was the average effect of the process change? Did the process average increase
or decrease and by how much?
2. 
Analyze
the data using the regression model y
= b0 + b1x, where y = time to approve and mail a claim
(weekly average), x = 0 for the old
process, and x = 1 for the new
process.
3. 
How
does this model measure the effect of the process change?
4. 
How
much did the process performance change on the average? (Hint: Compare the
values of b1 and the average of new
process performance minus the average of the performance of the old process.)

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