Mathematics Homework Assignment 6
Due in Week 7 and worth 30 points
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
Process Process
Elapsed Time ‘ Elapsed Time
Week Week
1 31.7 13 24
2 ‘ 27 14 25.8
3 ‘ 33.8 15 31
4 30 g 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 4 27.4
9 – 29 21 28.5
10 31.3 22 25.2
11 38-6 4 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 = bO + M x, where y = time to approve and
mail a claim (weekly average), x = O 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 M and the average of new process performance minus the average of the “performance of
the old process.)
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