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)     Old Process			  New Process	  Week	Elapsed Time		 Week	Elapsed Time 1	31.7		13	24 2	27		14	25.8 3	33.8		15	31 4	30		16	23.5 5	32.5		17	28.5 6	33.5		18	25.6 7	38.2		19	28.7 8	37.5		20	27.4 9	29		21	28.5 10	31.3		22	25.2 11	38.6		23	24.5 12	39.3		24	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.)

Download the homework below, type your answers into the document and submit it using the link located above.

MAT510 Homework Assignment 6.docx

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