Data Analysis and Interpretation Report for MIS770 Assignment 2

This report presents an analysis of the insurance industry, focusing on the role and performance of brokers. The analysis, based on a provided dataset, includes findings on average annual savings, the performance of individual brokers, customer satisfaction levels, factors influencing insurance premiums, and the proportion of customers incurring losses. Statistical methods are used to determine confidence intervals, and hypothesis tests are conducted to evaluate specific claims. The report also identifies appropriate sample sizes for future studies. The findings are summarized in a memorandum format, addressing key questions related to broker performance and customer experience in the insurance sector. The report is intended to inform decision-making within the insurance industry by providing data-driven insights into broker effectiveness, customer satisfaction, and premium factors. The data analysis included statistical techniques, and the report draws conclusions that ultimately assist in decision making related to car insurance and broker performance.

Memorandum
To: Paul Anderson
From: Emma Thomson
Subject: Analysis of the Presence of Brokers in the Insurance Industry
Dear Anderson,
Regarding the data about the growth of brokers in the insurance industry, presented below are the main
findings.
Analysis
1. Average Annual Savings
With a 95% confidence level a customer can save between $198.81 and $261.68 annually.
2. Individual Brokers Performance.
Brokers perform differently, the highest performing is broker number two, three, one and the least
performing is broker number 4.
3. Satisfaction of Customers with Brokers.
Over 60% of the sampled population is satisfied with broker services. More females and rural
area residents are satisfied by broker services.
4. Factors affecting current Insurance Premiums.
Car age and license held have negative impact on the current premiums while car value and
excess amount has a positive impact.
5. The annual average saving for all customers.
The average annual saving for all customers ranges between $198.88 and $261.60 at 95% level of
surety.

6. Customers who Incur Losses.
The proportion of customers who incur losses range between 14.23% and 21.77% at a certainty
level of 95%
7. Average savings over the last two years.
There is no evidence to prove that the average savings have gradually declined in the last two
years. It is true to say to has been around $260.
8. Hypothesis test on gender.
There is no sufficient of evidence to prove that more than 40% proportion of men seek services
through brokers.
9. Appropriate samples.
The appropriate sample sizes to estimate amount saved on premiums to within $50 and
comprehensive insurance policies to within 5% is 185 and 385 individuals respectively.
Thank you.
Sincerely,
Emma Thomson