The data in the table are 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 expediting the process and eliminating some extraneous 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||Elapsed Time||New Process||Elapsed Time|
Use the data in the table and submit the answers to the following questions in a Word document:
Save your time - order a paper!
Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlinesOrder Paper Now
- What was the average effect of the process change? Did the process average increase or decrease, and by how much?
- Analyze the data using the regression model y= b0 + b1 x, where y = time to approve and mail a claim (weekly average), x = 0 for the old process, and x = 1 for the new process.
- How does this model measure the effect of the process change?
- 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.)