How Process Change Can Improve Your Business

1. What was the average effect of the process change? Did the process average increase or decrease, and by how much? 

The Old Process's average time was 35.53, and the time for the new process is 26.35. The average effect of the process change is 7.183. This indicates a decrease in the process average by 7.183. 

2.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. 

The regression equation is; 

y = 33.53333 – 7.18333x 

3.How does this model measure the effect of the process change? 

The correlation coefficient is used to establish the relationship between the two variables ( Spiegel, 2018 ). The correlation coefficient,  r = 0.746, suggests a strong positive correlation between x and y. The R-squared is 0.556719044, which implies that the model explains 55.6719 % of the time variation to approve and mail a claim. 

4. How much did the process performance change on average? (Hint: Compare the values of b1 and the average of new process performance minus the average of the old process's performance). 

The process performance coefficient is -7.18333; it means that a unit change in the process performance will decrease the time to approve and mail a claim (weekly average) by 7.18333. Therefore, the performance of the process improves as the time reduces by 7.1833. 

Reference 

Spiegel, M. R. (2018).  Schaum's Outlines Statistics . McGraw-Hill Education.