Insurance company, part 2. An insurance company that provides medical insurance is concerned with recent data. They
Question:
Insurance company, part 2.
An insurance company that provides medical insurance is concerned with recent data.
They suspect that patients who undergo surgery at large hospitals have their discharges delayed for various reasons—
which results in increased medical costs to the insurance company. The recent data for area hospitals and two types of surgery (major and minor) are shown in the following table.
a) Overall, for what percent of patients was discharge delayed?
b) Were the percentages different for major and minor surgery?
c) Overall, what were the discharge delay rates at each hospital?
d) What were the delay rates at each hospital for each kind of surgery?
e) The insurance company is considering advising their clients to use large hospitals for surgery to avoid postsurgical complications. Do you think they should do this?
f) Explain, in your own words, why this confusion occurs.
Step by Step Answer:
Business Statistics
ISBN: 9780321716095
2nd Edition
Authors: Norean D. Sharpe, Paul F. Velleman, David Bock, Norean Radke Sharpe