AgriComp case study

The repair costs and non-refundable charges insulted local dealers creating
discontent. Currently, the local dealers service AgriComp computer systems by
providing local support and repair. To alleviate the tension, AgriComp gave a survey
to determine if policy changes were necessary for settling warranty claim disputes.
The survey was able to provide 292 responses from 350 affiliated dealers
nationwide. Changes would be costly, and a comprehensive study is necessary to
determine the findings.
The one-page survey asked dealers about the warranty appeals process and the use
of a mediator. The survey gave the choice on a rating scale from one to five
(ordinal scale) and a nominal scale to determine the frequency of appeals. The
measurements of the study contain both dependent and independent variables.
AgriComp needs to identify; if all dealers are upset or just a few, how to keep them
happy, and what changes are necessary.
To begin calculating the findings team b, will use the six-step process to complete a
cross-tabulation table. The cross tabulation table will provide the statistical
significance. The Chi-square test will show if the variables are dependent or
independent. This study will incorporate how the six-step statistical procedure
applies to the AgriComp case and identifies the variables presented and the level of
measurement. Further analyzing why the management levels are appropriate, how
the data relates to cross-tabulation, and management recommendations about the
dealers.
Six-Step Statistical Testing
The first variable is the warranty appeals process and the second, is the use of a
mediator. These two questions given while the survey will provide the data
necessary to complete a comparison of statistical decisions. Error type I is the
significance level of probability = , and error type II is the power of test probability
= . If the degree of probability of type I is correct, then the appeal process remains
the same. Power level of probability = 1 - , data was not supportive to sanction any
policy changes. However, if type II is correct, the results will show supportive data
for the power of probability 1 - . Revealing that the internal appeal process could
cause more financially but would be supportive of local dealers. Changes would
include the use of a third party mediator working directly with the dealers when
handling appeal procedures.
The survey will follow the six-step statistical process to complete the research for
the study. Beginning with stating the null and alternate hypothesis: (Ho) = the
study will conclude that the dealers are content with the internal appeal process;
and (Ha) > the study shows that the dealers would rather deal with a third party
mediator to handle requests. The second step, is determining the statistical tests
that will provide accurate data for the report; Chi-squared test, median test,

hypothesis test, and a t-test. By completing a cross tabulation, table the results will
provide data for relevant testing. Third, determining the statistical significance level
by calculating the total number of dealers, means, and standard deviations.
Followed by, determining the estimated value, completing the critical value test,
and interpret the data to determine the correct hypothesis (Cooper & Schindler,
2011). Since the estimated values are less that the critical values, we accept the
null hypothesis.
(Raw data results. , df = 12, P ( )
(Observed Results. , df = 12, P ( )
Levels of measurement
According to Statistics Solutions (2014), during testing, various levels of
measurement can be applied to regulate statistics, and depending on which of the
four levels of management is used to determine the outcome and results: nominal,
ordinal, interval, and ratio. Nominal measurements are the first cited, and the
numbers classify the data. Next, has a relationship with the number of items, this
level is the ordinal scale. The next level is the interval level of measurement
(Statistics Solutions, 2014). This level categorizes data, classifies, and specifies the
distances amongst intervals, ranging low to high. The last level of measurement is
the ratio; these variables can have frequencies starting at zero.
According to Statistics Solutions (2014), In the ratio level of measurement, the
divisions between the points on the scale have an equivalent distance between
them, and the rankings assigned to the items are according to their size (Statistics
Solution, para. 6). In this study, the levels used are the ordinal level and the ratio
level. The ordinal measurement was used in this case study because this gave the
researchers specific reasons behind the research project. The team understands
that with this level of analysis the values are not the same along the scale. The
nominal quantity was not appropriate to use because the level is directly used to
classify the variables within the research. The ratio values gave the exact levels of
analysis to conclude whether to reject or accept the null hypothesis.
Cross Tabulation
Cross-tabulation in percentage of frequency shows an increasing trend in both
expected frequencies and observed frequencies of the dealers usage for the eternal
mediator. The assessment is not apparent when analyzed from raw data out of the
study as the values from the survey require to be normalized. The normalized
interval between uses of the impartial mediator depicts a decrease in dealers
perceptions for the need to change the appeal process. The Analysis of variables
between uses of the appeal process per dealer is not sufficient to support the
assessment of a relationship between the data. While the Chi-square depicts a

relationship, analysis of the appeal based on the count of usage, use 0 to use 3,
enable to understand better the variables relationships. (See Appendix A).
Management Recommendations
The data presented from the survey shows that the more appeals that were created
by the dealers, the stronger satisfaction they had as the amount of petitions
increased. A lesser amount of requests created yielded a higher amount of
dissatisfaction. The result to agree or not agree with replacing the current structure
of demands was relatively stagnant across the board as the amount of appeals
increased with each dealer. The cross tabulation shows that there is a difference of
opinion from the dealers as the number of requests progresses.
How to account any differences from the dealers would be to take into consideration
how many of them had repairs but decided to fix them on their own or seek out a
third party. Convenience is a factor to consider; some dealers possibly prefer
alternative methods of repair through a third party who could act quicker than
AgriComp. Disgruntled dealers who have repeatedly gone through appeals might
also skew the results as to whether or not the dealers want an outside party
handling their appeals. The dealers seem to be rather satisfied with the current
model of appeals.
The results of the survey and cross tabulation show that there is a lesser chance of
AgriComp implementing the acquisition of a third party mediator. The more
transactions the dealers complete with the company the happier they seem with
the appeals process. Of the 292 dealers, 195 of them were either against or neutral
in not including an outside third party for their claims handling, roughly two-thirds of
the population surveyed felt that way. Recommendations to be made to
management are to become more lenient and understanding with their claims
processing. Despite the fact that the majority of dealers are happy and or content
with the current structure, they still had enough reason to cause up a stir and
initiate this research. Meaning that there are some disgruntled dealers out there,
who are the companys customers. These dealers need to be taken better care of if
AgriComp is to continue to be successful in the industry. Otherwise, rather than
complain about their lack of service, the dealers might eventually try and do
business with another company.
Conclusion
The AgriComp study was able to determine that the null hypothesis was acceptable.
Accomplished by a comprehensive review of the data and calculating dependent
and independent variables. Since changes are not necessary, AgriComp needs to
complete exploratory research, on the actual dispute claim process, to determine
what changes will alleviate tension among the dealers. Recommendations for
changes were presented to management for further review.

References
Cooper, D. R., & Schindler, P. S. (2011). Business Research Methods (11th ed.). New
York, NY: McGraw-Hill. ISBN: 9780073373706.
Statisctic Solution. (2014, December). Retrieved December 7, 2014, from
http://www.statisticssolutions.com/data-levx`els-of-measurement