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2. A study is carried out in a hospital in Chicago to compare two different methods of care management of elderly patients. The two methods

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2. A study is carried out in a hospital in Chicago to compare two different methods of care management of elderly patients. The two methods were "usual care" and "geriatric team care". The assignment of patients to the two groups was done at random. The analysis below will use 29 patients from each group and the data are recorded in patient . cav. (a) What are the key assumptions needed to compare the difference in costa of the two methods of care management? Is there any assumption violated in the current data set? If any, propose two reasonable data transformations to solve the problem, and pick the better of two. (b) Compute a 95% two-sided confidence interval of the ratio ?/0? for the possibly trans- formed data. Use this interval to test H: 0? =0} va. H :02 =0 (c) Consider testing H: p = p, va. I : p = p, on the transformed data. Report the results (d.f. of the test statistics and P-values) with or without the assumption of 2 = ]. In the assumption of equal variance critical to the results you obtain? (d) What is the implication of the result without the equal variance assumption in part (c) on the difference between costs on the original scale (i.e., before any transformation in made)

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