Please help me answer the drop-down box questions and the one fill in the blank.

Turner Hospital specializes in outpatient surgeries for relatively minor procedures. i (Click the icon to view information about medical supplies.) (Click the icon to view the past year data.) Jeff estimated the regression equation for (a) medical supplies costs and number of procedures and (b) medical supply costs and number of patient-hours and had the following results: (Click the icon to view the regression results.) 11 (Click the icon to view discussion results.) Read the requirements. More Info Turner is a nonprofit institution and places great emphasis on controlling costs in order to provide services to the community in an efficient manner. Turner's CFO, Tammy Chen, has been concerned of late about the hospital's consumption of medical supplies. To better understand the behavior of this cost, Tammy consults with Jeff Bratt, the person responsible for Turner's cost system. After some discussion, Tammy and Jeff conclude that there are two potential cost drivers for the hospital's medical supplies costs. The first driver is the total number of procedures performed. The second is the number of patient-hours generated by Turner. Tammy and Jeff view the latter as a potentially better cost driver because the hospital does perform a variety of procedures, some more complex than others. - Data Table Jeff provides the following data relating to the past year to Tammy. A B D Medical supplies Number of Number of 1 Month costs procedures patient-hours 2 Month 1 $ 107,000 340 2,100 3 Month 2 128,000 460 2,700 4 Month 3 59,000 200 1,400 5 Month 4 239,000 540 4,000 6 Month 5 181,000 360 3,800 7 Month 6 214,000 520 3,700 8 Month 7 211,000 440 3,200 9 Month 8 93,000 380 1,300 10 Month 9 223,000 320 3,100 Month 10 72,000 180 1,400 1213 Month 11 126,000 440 2,700 Month 12 220,000 380 3,900 - Data Table Regression 1: Medical supplies costs = a + (b ~ Number of procedures) Variable Coefficient Standard Error t-Value Constant $ 10,639 $ 55,418 0.19 Independent variable: No. of procedures $ 382.75 $ 140.40 2.73 12 = 0.43; Durbin-Watson statistic = 2.35 Regression 2: Medical supplies costs = a + (6 * Number of patient-hours) Variable Coefficient Standard Error t-Value Constant (9,045) $ 22,567 -0.40 $ 59.51 $ 7.67 7.75 Independent variable: No. of patient-hours r2 = 0.86; Durbin-Watson statistic = 1.40 - More Info After further discussion, Tammy and Jeff wonder if they should view both the number of procedures and number of patient-hours as cost drivers in a multiple regression estimation in order to best understand Turner's medical supplies costs. Begin by running a multiple regression to estimate the regression equation for medical supplies costs using both number of procedures and number of patient-hours as independent variables. You should obtain the following result: Regression 3: Medical supplies costs = a (by * No. of procedures) + (b2 * No. of patient-hours) Variable Coefficient Standard Error t-Value p-value Constant $ -13,240 $ 29,384 -0.45 0.663 $ 24.28 $ 100.45 0.24 0.814 Independent variable 1: No. of procedures Independent variable 2: No. of patient-hours 2 = 0.86; Durbin-Watson statistic = 1.40 57.69 $ 11.01 5.24 0.001 Requirement 1. Evaluate the multiple regression output using the criteria of economic plausibility, goodness of fit, significance of independent variables, and specification of estimation assumptions. Economic plausibility Plausible Goodness of fit Excellent fit Significance of independent variables Siginficant for patient-hours, but insignificant for procedures Independent Specification of estimation assumptions Requirement 2. What potential issues could arise in multiple regression analysis that are not present in simple regression models? Is there evidence of such difficulties in the multiple regression presented in this problem? Explain. Multicolliniarity difficulties do not arise in simple regression analysis but may arise in multiple regression analysis. This means that the independent variables are highly correlated. Is there evidence of such difficulties in the multiple regression presented in this problem? Explain. (Round the coefficient of correlation to two decimal places.) between number in the t-value for The correlation feature, using data analysis software, reveals a coefficient of correlation of of procedures and number of patient-hours. 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Is there evidence of such difficulties in the multiple regression presented in this problem? Explain. (Round the coefficient of correlation to two decimal places.) between number The correlation feature, using data analysis software, reveals a coefficient of correlation of of procedures and number of patient-hours. This is the threshold of 0.70 that is usually taken as a possible sign of problems. As evidence, there is a substantial patient-hours, in the estimated coefficient. in the t-value for Choose from any list or enter any number in the input fields and then click Check Answer. drop increase Clear All