Analysis of Insurance Claim Variations Across Different Coverage Types
Learning objective
- To be able to form the hypothesis statement(s) based on the understanding of the scenario
- To be able to identify the type of hypothesis test applicable to the given scenario
- To be able to clearly state the null and alternate hypothesis related to the scenario
- To be able to codify the hypothesis testing process backed by appropriate visuals using Python
- Document the results of the test and provide the conclusion to the stakeholders
Overview
This scenario would challenge you to demonstrate your understanding of essential concepts of Inferential Statistics and help you gain experience solving a problem aligned to the insurance domain
Story
InsureFit is a leading player in Healthcare insurance. It is investigating whether the various coverage options offered in their insurance plans influence the average claim amounts. The goal is to determine if there's a statistically significant difference in the average claim amounts among different types of coverage, such as inpatient care, outpatient care, prescription drugs, mental health care, dental care, and vision care.
The goal of this scenario would be to assess if there is a meaningful difference in the average claim amounts associated with different coverage types, providing insights that can guide pricing strategies, risk assessment, and product design.
The Business team has reached out to Data Intelligence Team for help perform an analysis around the question asked above.
You are assigned this task. How do you plan to go about it?