QUESTION 1

M&K Insurance is under immense pressure from competitors due to reduce Auto Insurance prices and high-risk underwriting. M&K has huge data resources from business operation; however, it is difficult to get required information in timely manner. The company has an OLTP database which keeps records on motor vehicle insurance information. M&K must make major steps for informed decision making and important data analysis. M&K wants to analyze the total claims for different types of insurance quarterly. Company critically needs to make comprehensive analysis like identification of contracts with a high loss ratio and low overall customer value. They have built a database of the client's profile whereby every claim, what types of the claims made, how much is the total claim and other interesting data are recorded. They use highly denormalized databases to support complexity of multi-dimensional analysis.

The CEO wants the data warehouse to answer the following questions:

What are the total claims that have been lodge last year?

What type of claims that have been applied for the last two years?

The company also hired a consultant to discover the pattern of buying sequence of insurance products. The data elements in the sales transactions may consist of data such as time of transaction, product bought during the transaction and the details of customers who bought the products. For pattern analysis, the company analyzes the client's behavior towards the purchase and future spending is much anticipated. They use observation to form a model for the analysis. The model used to establish a specific predetermined class of the dataset. M&K Insurance wants their customers to stay loyal to them by staying in their environment and from time to time fulfil the customer expectation and requirements.

Answer the following questions based on the scenario given.

a) Explain the type of analysis tool that is suitable to answer the CEO questions. Justify your answer.

b) Identity the most suitable categories that can be employed based on your answer in a). Justify your answer.

c) List five features of your chosen answer in b).

d) Explain the best of data warehouse analysis stool to produce the pattern analysis. Justify your answer.

e) Identity the most suitable operation that can be employed based on your answer in d). Justify your answer.

f) Identify two phases of model development of your chosen answer in e).