Business Decision Making

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Business Decision Making Project, Final Silke Robinson Statistics QNT 275 October 5, 2014 Barry Adkins Business Decision Making Project, Final Data Collected The data that was collected and used for this report is the total accident payout for the State Farm company customer when in an at fault accident with a Star & Shield Insured in Leon County, Florida. The number reflects the total payout after the accident was completely settled, and as such can contain underlying data that would include which specific coverage was used to pay the claim. We could break the numbers down even further, by coverage, however for the purpose of this report, we will just use the totals. Total payouts by Quarter If we take the above…show more content…
Fraud Fraud certainly always pays a big role in the insurance industry. Since everyone’s accidents drives the rates either up or down, fraud, unfortunately drives rates up. People claiming more damage or injuries means higher rates for all of us. Basically, we all pay into a big pot, and if a claim happens, the insurance company takes money out of the “pot” to cover the claim. When the money in the “pot” is not enough to cover the claims filed, insureds will see rate increases to make up the difference. The more fraud occurs, the more our rates are affected. Interpretation of Results After reviewing the information and data available, I can safely make the statement that the accident payouts have almost increased ten times over the four years that we have data to view. However, based on the data given, I cannot come to a conclusion on why the payout amounts have spiked as much as they have. There were a few natural disasters in 2013, but that would not explain all the numbers, since natural disasters usually pay out under comprehensive and the amounts would be smaller. If we had the breakdown for each coverage that paid out and how much was paid under each coverage, we could get a much better idea on what might be happening that drives the spike and take action on how to correct the problem. Conclusion We can tell quite a few things from the available data,
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