Question
Jennifer Nguyen, Healthcare Management program graduate who always had only perfect marks in statistics, was hired by the famous Healthy Life medical insurance company. Jennifer
Jennifer Nguyen, Healthcare Management program graduate who always had only perfect marks in statistics, was hired by the famousHealthy Lifemedical insurance company. Jennifer is assigned to conduct statistical
analysis of medical and financial data. As Jennifer is on probation, please help her to complete the following six tasks. In problems 2-6, state hypothesesH0andH1and provide detailed conclusions (based onP-values or critical values/test statistics) together with the Excel output. For your convenience, the data are given in the Major Assignment Data file. You can also find useful information on the Blackboard in Excel Instructions folder.
1) From time to time, unfortunately,Healthy Lifeemployees
have to deal with insurance fraud. Say, some people claim medical
services that have never been provided or money they never paid.
To that end,Healthy Lifehired a number of investigators whose
functions are not much different from those of police detectives.
Doctor N.N. has been under suspicion for some time for deceiving
bothHealthy Lifeand his patients.Healthy Lifeapproached the
provincial authorities and they agreed to launch a formal investigation and open a case given a credible evidence of fraud is provided. TheHealthy Lifeinvestigation department found a number of offences.These included "up-coding" or "upgrading," which involved billing for moreexpensive treatments than those actually provided; providing and subsequently billing for treatments that were not medically necessary; scheduling extra visits for patients; referring patients to another physician when no further treatment was actually necessary; "phantom billing," or billing for services not rendered; and "ganging," or billing for services to family members or otherindividuals who were accompanying the patient but who had not personally received any services. Jennifer Nguyen took part in this investigation together with Dr. Steinberg and Ian McGillivray, a former police detective and now aHealthy Lifeemployee. At one point, Jennifer was asked to compare the amount doctor N.N. charged for a certain medical procedure with the province average. Jennifer randomly selected a sample of forty cases (see the Major Assignment Data file).Can we support at 1% significance level the doctor's widely advertised claim that his averageprocedure fee is way below the population average $510? Use Data Analysist-Test: Two-Sample Assuming Unequal Variances and "fool" Excel approach.Assume that the values are normally distributed.
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