Business Statistics Discussion, Assignment, and Case Study
May 20th, 2022
- Place all references and citations in and below the appropriate work. Do not place all of the assignments on the same page. Times New Roman 12 and APA format.
- 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 New
- Elapsed Time 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).
- 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.)
- Creating Statistical Experiments
- Per the textbook, trying to understand factors that impact the outcomes of a given business process is an important aspect of improving business operations. Conventional wisdom plans experiment one-factor-at-a-time (OFAAT).
- 1. Compare and contrast the main advantages and disadvantages of OFAAT and DOE
- 2. Select the approach (e.g., OFAAT or DOE) that you would use in order to obtain effective business process.
- 3. Provide a rationale for your response.
- Read the following case study.
- A company wishes to improve its e-mail marketing process, as measured by an increase in the response rate to e-mail advertisements. The company has decided to study the process by evaluating all combinations of two (2) options of the three (3) key factors: E-Mail Heading (Detailed, Generic); Email Open (No, Yes); and E-Mail Body (Text, HTML). Each of the combinations in the design was repeated on two (2) different occasions. The factors studied and the measured response rates are summarized in the following table.
- Run Heading Email Open Body Replicate Response Rate
- 1 Generic No Text 1 46
- 2 Detailed No Text 1 34
- 3 Generic Yes Text 1 56
- 4 Detailed Yes Text 1 68
- 5 Generic No HTML 1 25
- 6 Detailed No HTML 1 22
- 7 Generic Yes HTML 1 21
- 8 Detailed Yes HTML 1 19
- 1 Generic No Text 2 38
- 2 Detailed No Text 2 38
- 3 Generic Yes Text 2 59
- 4 Detailed Yes Text 2 80
- 5 Generic No HTML 2 27
- 6 Detailed No HTML 2 32
- 7 Generic Yes HTML 2 23
- 8 Detailed Yes HTML 2 33
- Write a two to three (2-3) page paper in which you:
- 1. Use the data shown in the table to conduct a design of experiment (DOE) in order to test cause-and-effect relationships in business processes for the company.
- 2. Determine the graphical display tool (e.g., Interaction Effects Chart, Scatter Chart, etc.) that you would use to present the results of the DOE that you conducted in Question 1. Provide a rationale for your response.
- 3. Recommend the main actions that the company could take in order to increase the response rate of its e-mail advertising. Provide a rationale for your response.
- 4. Propose one (1) overall strategy for developing a process model for this company that will increase the response rate of its e-mail advertising and obtain effective business process. Provide a rationale for your response.
- The assignment must follow these formatting requirements:
- • Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format.
- • Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
- The specific course learning outcomes associated with this assignment are:
- • Build regression models for improving business processes.
- • Design experiments to test cause-and-effect relationships in business processes.
- • Use technology and information resources to research issues in business process improvement.
- • Write clearly and concisely about business process improvement using proper writing mechanics.
