Operations Analyst Qualification Test

Instructions:

• Please answer the questions without use of outside sources of information (e.g. internet, Excel Help, etc.).
• Create a new Word document and save the file to Desktop with your first and last name as the filename.
• Enter answers to all the questions (except Question 2ai) into this Word document.
• Save the Excel document provided to your Desktop with your first and last name as the filename. Provide all work to support answers for Question 2 in the Excel document.
• Please send your answers and excel document to Catherine Minaker, via email prior to the deadline provided in this testing invitation.

Question 1:

A recent publication stated that the average cost of repairing light vehicles in Canada is $6,200. Your manager asks you summarize the cost of an MPI light vehicle repair claim. You are given the following random sample of gross repair costs for 45 claims.

$5,735	$5,826	$5,939	$5,995	$6,221	$6,262	$6,278	$6,452	$6,488
$6,504	$6,559	$6,568	$6,713	$6,827	$6,835	$6,879	$6,908	$6,918
$6,931	$6,963	$6,964	$6,992	$7,096	$7,120	$7,235	$7,261	$7,282
$7,298	$7,342	$7,359	$7,376	$7,418	$7,499	$7,643	$7,738	$7,897
$7,936	$8,043	$8,058	$8,079	$8,240	$8,274	$8,674	$8,754	$8,927

Pleaseanswer the following questions:

1. Which measure of central tendency do you think is most appropriate for summarizing this sample data? How would you explain to a non-technical audience why you chose this measure? (15 marks)
2. What kind of statistical test could be applied to the sample to determine if MPI’s repair cost is different than the Canadian average? Why? (15 marks)

Question 2:

On March 1, 2017, MPI management implemented a new process that was expected to reduce the repair cost of lightning claims. Management believes that the initiative has been a success and has asked you to confirm that the new process has achieved its objective for repairable lightning claims.

You request a dataset that includes claims data for repairs performed between March 1, 2015 and February 28, 2019. Another department runs the query quickly and sends you a dataset (provided) without asking any follow-up questions about your requirements. This is the first time you have looked at the dataset.

1. Use the dataset to evaluate whether the new process reduced the average repair cost of lightning claims.
   1. Validate and ensure that the data set is ready for analysis. (10 marks)
   2. Determine if the repair cost increased or decreased after the new process was implemented, and by how much. Explain the steps you followed to make this conclusion. (5 marks)
   3. If repair costs did change, was it as a result of the new process? If repair costs didn’t change, is it possible that the new process was still effective? Support your answer, including any numbers, tables, charts, etc. that you see as relevant. (30 marks)
2. What are the limitations of your findings? Is there any other data that you would be interested in obtaining to strengthen your analysis? Explain. (15 marks)
3. Summarize your findings in an email suitable for a non-technical audience. (10 marks)