Question
Recent research into the cost of various medical procedures has shown the impact of certain complications encountered in surgery on the total cost of a
Recent research into the cost of various medical procedures has shown the impact of certain complications encountered in surgery on the total cost of a patients stay in the hospital. The researchers used regression analysis and found the following results:
Total cost for patient = Constant, plus
a Length of stay (measured in days), plus
b Presence of one or more complications (= 1 if true, 0 if false), plus
c Use of a laparoscope (= 1 if true, 0 if false)
where a, b, c are coefficients of the regression model. The laparoscope is an instrument somewhat like a miniature telescope with a fiber-optic system that brings light into the abdomen. It is about as big around as a fountain pen and twice as long.
The research, based on 64 patients, showed the following regression results:
R-squared: 57%
Constant term: $3,849
Coefficients and t-values for independent variables:
Length of Stay | Complications | Laparoscope | |||||||
Coefficient | $ | 819 | $ | 1,861 | $ | 994 | |||
t-value | 10.95 | 4.31 | 3.29 | ||||||
Required:
1. What is the estimated cost for a patient whose surgery has complications and who stays in the hospital 3 days, and whose surgery requires a laparoscope?
2. Which, if any, dummy variables are used in this regression? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
- Complications were presentunanswered
- Use of a laparoscopeunanswered
- Length of stay (measured in days)unanswered
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