Course: HMGT 400

Exercise # 3:

The dataset provides Herfindahl-Hirschman Index, and Herfindahl index categories, please use theherf_cat variableand answer the following questions n a Microsoft Word document:

Note: "The Herfindahl-Hirschman Index is a commonly accepted measure of market concentration used by antitrust enforcement agencies and scholars in the field. The HHI is calculated by squaring the market share of each firm competing in the market and then summing the resulting numbers" (NASI, 2015; pp: 14-16).Read more from here:

https://www.urban.org/sites/default/files/publication/50116/2000212-Addressing-Pricing-Power-in-Health-Care-Markets.pdf

For this exercise, you do not need to compute the HHI, but if you have any questions, please do not hesitate to ask me, but try to learn more about this you will need that to report your findings.

Use the dataset from week1 exercise and then answer the following questions in a Microsoft Word document:

Compare the following information between hospitals located in high, moderate and low competitive markets (Table 3):

1.What are the main significant differences between hospitals in different markets? (use ANOVA test)

2.Using the density curves, compare hospital cost and revenues between three markets.

3.What is the impact of being in a high-competitive market on hospital revenues and cost? Do you think being in a high-competitive market has a positive impact on net hospital benefits?What about the number of Medicare and Medicaid discharges? Do you think hospitals in a higher competitive market are more likely to accept more Medicare and Medicaid patients? What is the impact of other variables? Please discuss your findings.

(Note: to answer to the last question, please compute the Medicare-discharge-ratio and Medicaid-discharge-ratio first, then run 2 t-tests - high vs. moderate and high vs. low competitive market), please support your findings with box-plots). Medicare-discharge-ratio = Total medicare discharges/Total hospital discharges;Medicaid-discharge-ratio = Total medicaid discharges/Total hospital discharges

Limit all figures to 2 decimal places max.

Use Excel for calculations (mandatory). Make sure to attach the plotted information

Download data from here (csv file):HMGT400HOSP

Download data from here (xls file):HMGT400HOSPITAL.xls.xlsx

Table 3. Comparing hospital characteristics by market, 2011 and 2012

High Competitive Moderate Competitive Moderate Competitive ANOVA/Chi-Sq (results)

Market Market Market P Value

Hospital Characteristics N Mean St. Dev N Mean St. Dev N Mean St. Dev

Hospital Beds

Number of paid Employees

Number of non-paid Employees

Interns and Residents

System Membership

Total hospital cost

Total hospital revenu

Hospital Net benefits

Available Medicare days

Available Medicaid days

Total hospital discharges

Medicare discharge ratio

Medicaid discharge ratio

Herfindahl Index

NOTE: Please I need help getting the " ANOVA/Chisq results P-Value, Herfindahl Index & The Plotted information". Please show me how this is done and send me a graph. Thanks