Basic HTML Version
Q
uantitative
R
easoning &
P
roblem
S
olving
410
© 2014 Pacific Crest
Scenario:
Choose your own health insurance plan under the new laws. (Link available from
the companion website.)
Step
Watch it Work!
1. What is your purpose?
To understand the dynamics of what is involved in health
insurance and then choose the most appropriate plan
2. What is the designer's purpose? This organization produces value by helping individuals and
families determine the appropriate type and provider of health
insurance for their needs
3.
Are the purposes aligned?
We investigated Health Insurance Sort and it looks like a
reputable source for insurance comparison and clarification
4. What are the inputs?
A set of personal characteristics, previous medical history,
insurance history, employment, and current conditions
5. What are the outputs?
List of health insurance plans, with the option to sort and
compare, and details including the company, monthly cost,
and deductible
6. What are the relationships?
The selection process matches eligible providers with your
given personal information
7.
Does the model make sense? The more expensive plans correlate with additional services
and lower deductibles
8. What are the limitations of the
model?
The companies must be licensed for New Hampshire and in
this case only one company is able to sell health insurance in
NH
9.
Can you validate the results so
you can trust the conclusions?
I understand the costs and benefits associated with health
insurance and have a health plan that minimizes monthly cost
while still providing the protection I need.
YOUR
TURN!
Scenario:
Use an online map service such as those available on the companion website
to find the best route connecting more than two locations.
O
ops
! A
voiding
C
ommon
E
rrors
●
Failing to account for the difference between fixed input variables versus probabilistic variables
Example
: You only missed one question on the exam but ended up with a B instead of an A!
Why?
You may end up being graded on a curve and thus what you
thought
you earned is not
what you actually received (i.e., faculty discretion).
●
Not identifying a critical assumption
Example
: In the weather models, the forecast for snow versus rain based upon the projected
temperature of 30 degrees failed to predict rain for the shoreline
Why?
The model did not address local dynamics of interplay between wind strength, ocean
temperature, and current temperature causing the locations two miles from the ocean