ANOVA Test and Statistics can be leveraged to compare means across groups. In the below example, ANOVA test is used to compare mean of claim amount across insurance policy inception years.
When a customer or individual takes up a insurance policy, it pays a premium and applies for insurance claim as per insurance policy details. The example is of Health Insurance and details include policy inception year (year when a policy is taken or become effective) and claim amount.
It is important for the business to understand how average claim amount varies across policy inception years, or geographical locations of the customers. Based on the initial ANOVA test results further analysis can be carried out to understand the drivers of claim amount and profiles of the customers acquired across the years.
Attached excel file demonstrates the ANOVA calculation details. Even if you are using any other analytics systems like SAS, R or SPSS for the ANOVA test, it advised to understand the calculation details around ANOVA statistics