Aims and stages of an analysis
Paper A style · Data analysis · Straightforward · 9 marksA general insurer's analytics team has been asked to carry out three pieces of work using its motor portfolio data:
(a) summarising the average claim cost in each region last year for the annual report;
(b) using a random sample of 2,000 policies to assess whether the claim frequency of drivers aged under 25 differs from that of older drivers across the whole portfolio, with a measure of the uncertainty;
(c) forecasting the number of claims the insurer will receive next quarter.
- (i)3 marks
State, with a reason, whether each of (a), (b) and (c) has a descriptive, an inferential or a predictive aim.
- (ii)4 marks
Describe the main stages the team should follow to carry out piece of work (c), from defining the problem to reporting the results.
- (iii)2 marks
Suggest two tools or techniques the team could use in the exploratory stage of piece of work (a), and say what each would show.