Question 5The U.S. government authorizes private contractors to audit bills paid by Medicare and Medicaid. We want to answer the question, "Will larger sized claims have a higher chance of being judged as an overpayment?" a. (2 pts) What is the response variable? ANSWEREDb. (2 pts) What is the explanatory variable? ANSWEREDc. (2 pts) What are the observational units for this study? ANSWEREDThe contractor audits a random sample of 560 paid claims and judges each claim to be either fully justified or an overpayment. Among the selected claims 280 were small sized claims and the rest were large sized claims. From those 280 small sized claims, 120 were overpayments and from the large sized claims, 170 were overpayments.d. (6 pts) Complete a two-way table according to the information given above. ANSWEREDe. (4 pts) Calculate the corresponding conditional proportions? ANSWEREDf. (2 pts) Calculate the value Difference in proportions ANSWEREDg. (3 pts) Calculate and interpret the relative risk.ANSWEREDh. (3 pts) State the null and alternative hypotheses in symbols to answer the researcher's question.i. (2 pts) Are the conditions necessary for the theory-based approach met in this study? Explain.j. (4 pts) Calculate the 95% confidence interval for the difference in proportions (Use formula to manually calculate it and show all your workings for full credit. Do not use applet).k. (2 pts) Interpret the above obtained 95% confidence interval.l. (2 pts) Based on the confidence interval, will you reject your null hypothesis? Why or why not?m. (2 pts) Based on your decision above, state the conclusion that you can arrive at.n. (4 pts) Calculate the standardized statistic based on the given information. (Use formula to manually calculate the value, show all your work for full credits.)o. (2 pts) Calculate the value Difference in proportions.p. (3 pts) Calculate and interpret the relative risk.q. (3 pts) State the null and alternative hypotheses in symbols to answer the researcher's question.r. (2 pts) Are the conditions necessary for the theory-based approach met in this study? Explain.s. (4 pts) Calculate the 95% confidence interval for the difference in proportions (Use formula to manually calculate it and show all your workings for full credit. Do not use applet).t. (2 pts) Interpret the above obtained 95% confidence interval.u. (2 pts) Based on the confidence interval, will you reject your null hypothesis? Why or why not?v. (2 pts) Based on your decision above, state the conclusion that you can arrive at.w. (4 pts) Calculate the standardized statistic based on the given information. (Use formula to manually calculate the value, show all your work for full credits.)

Queston 5 A Payment B. Claim size ( . claims D . Total Fully Justified Over Paid 250 sm- claim 1 leo 120 280 19. claim 110 170 Total 270 290 E- Small Claim fully justified 209210 1/2 x 160 10 /28010 1/2 X 0917 - 27 =,29 Small claim over paid 1/ 2x 120/280 1/2x 3/7 = 3/14 = , 21 Large claim fully justified 1/ 2 x 110/280 1/ 2 x "1 / 28 = 1/54 = 20 large claim over paid 1/2x 290/ s40 1/2 x 29 / gle 29/112 = 1240 F= Small claim fully justified us small claim overpaid . 29 - . 21 = 08 - Large claim fully justified vs. Large claim over paid . 24 - 20. ole - Small daim fully justified us Large claim fully justified . 29 - . 20 = . 09 Large claim overpaid us small claim over paid . 26-. 21 =1 05 G. Large claims Lel to over paid, led/ 43 Small claims 43% over paid = 1.419