The American Hospital Association recommends that all providers use the followin
ID: 3277887 • Letter: T
Question
The American Hospital Association recommends that all providers use the following definitions when describing a patient’s condition: fair, serious, and critical. Costs for 15 patients admitted by Forest Lake Hospital of Madrid are listed below:
Patient
Cost $
D1 (1 if critical, 0 if not)
D2 (1 if serious, 0 if not)
1
17,200
1
0
2
11,100
1
0
3
12,000
1
0
4
10,900
1
0
5
13,800
1
0
6
6,500
0
1
7
10,000
0
1
8
11,500
0
1
9
7,000
0
1
10
8,500
0
1
11
2,100
0
0
12
1,300
0
0
13
3,400
0
0
14
7,500
0
0
15
2,000
0
0
2. Interpret the slopes of the ß coefficients.
3. Are the difference between the means statistically different? Please explain.
Patient
Cost $
D1 (1 if critical, 0 if not)
D2 (1 if serious, 0 if not)
1
17,200
1
0
2
11,100
1
0
3
12,000
1
0
4
10,900
1
0
5
13,800
1
0
6
6,500
0
1
7
10,000
0
1
8
11,500
0
1
9
7,000
0
1
10
8,500
0
1
11
2,100
0
0
12
1,300
0
0
13
3,400
0
0
14
7,500
0
0
15
2,000
0
0
Explanation / Answer
2)
Coefficients
Term Coef SE Coef T P
Constant 10850 760.329 14.2701 0.000
d1
0 -4870 760.329 -6.4051 0.000
d2
0 -2720 760.329 -3.5774 0.004
here is unbalanced design so that this occurence of large estimate of coefficient
3)
Analysis of Variance
Source DF Seq SS Adj SS Adj MS F P
Regression 2 238252000 238252000 119126000 20.6065 0.0001315
d1 1 164268000 237169000 237169000 41.0256 0.0000338
d2 1 73984000 73984000 73984000 12.7978 0.0038004
Error 12 69372000 69372000 5781000
Total 14 307624000
so at 0.05 level all coefficient has significant effect in regression since p-value is < 0.05 for each coefficient
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