Question
Is there a difference in the average medical malpractice claim amount for those who have private insurance versus those who do not have private insurance?
Is there a difference in the average medical malpractice claim amount for those who have private insurance versus those who do not have private insurance? A random sample of insurance claims was collected and the data can be found below
a. Provide the graph that illustrates the relationship of the claim amount between the two groups.
b. Test at the 0.05 level of significance. What is your conclusion?
c. Does your conclusion change if the level of significance is changed to 0.01? Why or why not?
d. What assumption(s) was (were) required to perform this hypothesis test?
e. Does (do) the assumption(s) appear to be reasonably met in this case? Does it matter if the assumptions are or are not met in this case? Paste the Minitab output required to answer this question here.
Amount | Severity | Age | Private Attorney | Marital Status | Specialty | Insurance | Gender |
426500 | 6 | 37 | 1 | 2 | Pediatrics | 1 | Female |
64000 | 4 | 66 | 1 | 2 | Plastic Surgeon | 2 | Female |
17604 | 7 | 69 | 1 | 2 | Internal Medicine | 1 | Male |
1986 | 3 | 56 | 0 | 2 | Urological Surgery | 1 | Female |
41500 | 5 | 42 | 1 | 2 | General Surgery | 4 | Male |
33708 | 7 | 69 | 1 | 2 | General Surgery | 1 | Male |
177498 | 3 | 34 | 1 | 2 | OBGYN | 1 | Female |
64000 | 4 | 45 | 1 | 1 | Orthopedic Surgery | 1 | Female |
5250 | 5 | 42 | 1 | 2 | Internal Medicine | 1 | Female |
28000 | 5 | 73 | 1 | 4 | Ophthamology | 4 | Female |
9500 | 4 | 2 | 1 | 1 | Emergency Medicine | 4 | Female |
4000 | 3 | 31 | 1 | 2 | Orthopedic Surgery | 1 | Male |
38100 | 3 | 36 | 1 | 2 | OBGYN | 3 | Female |
34000 | 3 | 24 | 1 | 2 | Anesthesiology | 4 | Female |
21500 | 5 | 42 | 1 | 0 | Neurology/Neurosurgery | 1 | Male |
16500 | 3 | 29 | 1 | 2 | Family Practice | 3 | Female |
48500 | 3 | 61 | 1 | 2 | Orthopedic Surgery | 5 | Male |
136500 | 9 | 49 | 1 | 2 | General Surgery | 4 | Female |
376500 | 7 | 0 | 1 | 1 | OBGYN | 1 | Female |
311500 | 3 | 28 | 1 | 2 | General Surgery | 1 | Female |
926500 | 8 | 34 | 1 | 2 | Dermatology | 1 | Male |
74000 | 2 | 60 | 1 | 2 | Anesthesiology | 1 | Female |
86500 | 4 | 69 | 1 | 2 | OBGYN | 2 | Female |
36500 | 7 | 80 | 1 | 3 | Ophthamology | 1 | Female |
32000 | 5 | 29 | 1 | 2 | Family Practice | 3 | Female |
2534 | 3 | 48 | 0 | 2 | General Surgery | 1 | Female |
10250 | 3 | 39 | 1 | 4 | Family Practice | 4 | Male |
27000 | 3 | 37 | 1 | 2 | Physical Medicine | 4 | Female |
160000 | 3 | 36 | 1 | 4 | General Surgery | 4 | Male |
531710 | 4 | 48 | 1 | 4 | Neurology/Neurosurgery | 1 | Male |
296542 | 9 | 42 | 1 | 2 | Family Practice | 1 | Male |
26500 | 5 | 45 | 1 | 2 | Family Practice | 4 | Male |
6500 | 4 | 18 | 1 | 1 | Orthopedic Surgery | 1 | Male |
536500 | 6 | 35 | 1 | 2 | Urological Surgery | 1 | Male |
102001 | 4 | 43 | 0 | 1 | OBGYN | 1 | Female |
231500 | 7 | 43 | 1 | 0 | Orthopedic Surgery | 1 | Male |
231500 | 7 | 43 | 1 | 0 | Neurology/Neurosurgery | 1 | Male |
4111 | 3 | 7 | 0 | 1 | Ophthamology | 1 | Female |
5830 | 3 | 31 | 0 | 1 | Orthopedic Surgery | 3 | Male |
161500 | 3 | 70 | 1 | 2 | Neurology/Neurosurgery | 2 | Female |
61500 | 8 | 51 | 1 | 2 | General Surgery | 3 | Female |
11500 | 7 | 57 | 1 | 2 | Emergency Medicine | 4 | Male |
56500 | 4 | 53 | 1 | 4 | Orthopedic Surgery | 4 | Male |
41500 | 9 | 21 | 1 | 1 | Family Practice | 4 | Male |
11500 | 5 | 30 | 1 | 0 | Family Practice | 2 | Female |
51000 | 4 | 33 | 1 | 2 | Orthopedic Surgery | 2 | Male |
851500 | 7 | 43 | 1 | 1 | OBGYN | 1 | Female |
251500 | 7 | 43 | 1 | 1 | OBGYN | 1 | Female |
101500 | 5 | 43 | 1 | 2 | Ophthamology | 1 | Female |
221500 | 7 | 50 | 1 | 2 | Family Practice | 1 | Male |
46500 | 2 | 11 | 1 | 1 | Family Practice | 3 | Female |
2776 | 3 | 40 | 1 | 2 | OBGYN | 1 | Female |
19000 | 3 | 28 | 1 | 2 | Cardiology | 1 | Female |
76500 | 6 | 21 | 1 | 1 | Resident | 2 | Female |
21500 | 7 | 57 | 1 | 2 | Cardiology | 1 | Male |
776500 | 8 | 42 | 1 | 0 | Emergency Medicine | 4 | Male |
361500 | 5 | 23 | 1 | 2 | Family Practice | 1 | Female |
91500 | 8 | 33 | 1 | 1 | General Surgery | 1 | Female |
7500 | 1 | 24 | 1 | 2 | OBGYN | 1 | Female |
10648 | 3 | 25 | 1 | 4 | General Surgery | 1 | Female |
21700 | 4 | 18 | 1 | 4 | Family Practice | 1 | Female |
6500 | 4 | 65 | 0 | 2 | Internal Medicine | 1 | Female |
2435 | 5 | 21 | 0 | 1 | Internal Medicine | 2 | Female |
139000 | 6 | 24 | 1 | 2 | Neurology/Neurosurgery | 5 | Female |
139000 | 6 | 24 | 1 | 2 | Neurology/Neurosurgery | 5 | Female |
15000 | 3 | 41 | 1 | 2 | Family Practice | 1 | Female |
31500 | 9 | 63 | 1 | 2 | General Surgery | 2 | Female |
8000 | 9 | 63 | 1 | 2 | Internal Medicine | 2 | Female |
21500 | 3 | 33 | 1 | 4 | Orthopedic Surgery | 1 | Female |
96180 | 8 | 44 | 0 | 2 | Pathology | 1 | Female |
11000 | 3 | 38 | 0 | 2 | OBGYN | 1 | Female |
206500 | 4 | 37 | 0 | 0 | General Surgery | 2 | Female |
7500 | 3 | 14 | 0 | 1 | Emergency Medicine | 1 | Female |
51500 | 7 | 56 | 1 | 2 | Neurology/Neurosurgery | 4 | Male |
14000 | 7 | 46 | 1 | 2 | Emergency Medicine | 1 | Male |
21500 | 3 | 31 | 1 | 2 | General Surgery | 4 | Male |
10500 | 3 | 33 | 1 | 2 | Resident | 4 | Male |
20500 | 4 | 37 | 0 | 1 | Emergency Medicine | 4 | Male |
20500 | 4 | 37 | 0 | 4 | Radiology | 4 | Male |
21500 | 3 | 87 | 0 | 1 | Internal Medicine | 2 | Male |
23500 | 4 | 63 | 0 | 2 | Urological Surgery | 1 | Female |
46861 | 4 | 76 | 0 | 2 | Radiology | 4 | Male |
96500 | 9 | 73 | 0 | 2 | General Surgery | 4 | Female |
351500 | 9 | 59 | 0 | 2 | Internal Medicine | 4 | Male |
101500 | 9 | 64 | 1 | 2 | Family Practice | 4 | Male |
6910 | 3 | 40 | 0 | 2 | Anesthesiology | 1 | Male |
74000 | 4 | 12 | 1 | 1 | Pediatrics | 1 | Female |
13500 | 3 | 33 | 1 | 2 | Family Practice | 1 | Male |
14000 | 4 | 57 | 1 | 2 | Family Practice | 1 | Male |
22750 | 3 | 31 | 0 | 2 | Resident | 3 | Female |
21500 | 5 | 34 | 0 | 4 | Plastic Surgeon | 4 | Female |
6500 | 4 | 31 | 1 | 1 | Thoracic Surgery | 1 | Female |
2015 | 3 | 66 | 0 | 2 | Anesthesiology | 4 | Male |
16500 | 4 | 19 | 1 | 1 | Orthopedic Surgery | 1 | Female |
3500 | 4 | 27 | 1 | 2 | Radiology | 4 | Male |
111500 | 5 | 51 | 1 | 2 | Orthopedic Surgery | 4 | Female |
19500 | 9 | 78 | 1 | 3 | General Surgery | 4 | Female |
2155 | 3 | 40 | 0 | 4 | Anesthesiology | 4 | Male |
4749 | 3 | 22 | 0 | 1 | Emergency Medicine | 3 | Male |
2760 | 3 | 65 | 0 | 4 | Anesthesiology | 2 | Male |
1567 | 3 | 40 | 0 | 4 | Anesthesiology | 4 | Female |
2010 | 3 | 50 | 0 | 4 | Internal Medicine | 4 | Male |
2025 | 3 | 21 | 0 | 4 | Anesthesiology | 4 | Male |
9000 | 3 | 54 | 0 | 2 | Occupational Medicine | 1 | Female |
1550 | 3 | 70 | 0 | 2 | Anesthesiology | 4 | Female |
1574 | 3 | 46 | 0 | 2 | Anesthesiology | 4 | Male |
82500 | 9 | 73 | 1 | 2 | Cardiology | 2 | Female |
82500 | 9 | 73 | 1 | 2 | Cardiology | 2 | Female |
3700 | 3 | 40 | 0 | 2 | OBGYN | 3 | Female |
251500 | 5 | 56 | 1 | 2 | Family Practice | 3 | Female |
24039 | 3 | 50 | 0 | 2 | Ophthamology | 4 | Male |
3500 | 4 | 53 | 0 | 2 | Family Practice | 1 | Female |
16500 | 4 | 31 | 0 | 1 | OBGYN | 2 | Female |
6500 | 3 | 24 | 0 | 2 | Dermatology | 4 | Female |
1805 | 3 | 40 | 0 | 4 | Anesthesiology | 3 | Female |
1644 | 3 | 72 | 0 | 4 | Anesthesiology | 2 | Male |
22750 | 3 | 31 | 0 | 2 | OBGYN | 3 | Female |
1573 | 3 | 57 | 0 | 2 | Anesthesiology | 4 | Female |
key: | |||||||
Marital Status | 0=divorced, 1=single, 2=married, 3=widowed, 4=unknown | ||||||
Insurance | 1=private, 2=Medicare/Medicaid, 3=No insurance, 4=Unknown, 5=Worker Compensation | ||||||
Private Attorney | Claimant represented by private attorney: 1=Private Attorney, 0=Not Private | ||||||
Severity | 1 (emotional trauma) to 9 (death) | ||||||
Gender | Gender of the claimant | ||||||
Age | Age of the claimant | ||||||
Amount | Amount of claim payment in dollars |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started