The following sections should be incorporated (if enough information is provided in the problem):
1. A Summary of the Problem
Gives a brief introduction to the problem. Please do NOT copy and paste the original problem from the
given case study. Give a brief two-paragraph description of the overall goals of the study and what must
be found in order to solve the problem.
2. Method of solving
Describe which tools you learned in class that will be employed in the problem-solving. Describe why
the methods you are using will lead to a solution to the problems in the case study.
3. Give the derivation (if one is required) or how specifically you solved your problem in detail.
Typically, the case study will guide you towards what should be found and reported on. You must identify
the proper tools required to solve the problem as well as use them with any other information or data.
4. Results
Summarize your technical results as well as what the results mean in plain English. Your audience
typically won’t enjoy reading tables of numbers or heavy mathematics. They like short summary tables,
graphs, charts, and plain English. After you have described the technical results, translate them into a
meaning that any audience, regardless of their mathematical background, can understand.
5. Managerial Implications
With any type of problem-solving there are usually decisions attached to the solutions. You must take
your results and provide recommendations for the best possible decision to make. Justify why you believe
the recommended decision will be the best to make. Also, perform a sensitivity analysis where appropriate
(we will discuss this later in the course).
6. Attachments section (where applicable)
This section may include MS Excel files (original calculations that include formulas), statistical analysis
output, charts, etc. If your mathematical derivations are long or your work was done using Excel or some
other type of software, you must provide the files which show the work. If it is a mathematical derivation,
you must actual formulas in Excel.
STYLE
Please use Times New Roman font, black, size 12, single space, indented paragraphs, 1-inch margins
QUESTIONS
1. Import Insurance data into RStudio
2. Assess the normality of the following variables: claim amount, coverage, household income, and deductible (explain whether or not the variables are normally distributed, are distribution symmetrical or skewed). Explain your findings and support with descriptives (numerical and/or graphical)
3. Is there a statistical relationship between claim amount and income? Explain your findings and support with descriptives (numerical and/or graphical)
4. Is there a statistical relationship between the type of claim and marital status?
