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 patient?s 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,care coefficients of the regression model, and |
? | The laparoscope is an instrument somewhat like a miniature telescope with a fiber optic system which brings light into the abdomen. It is about as big around as a fountain pen and twice as long. |
The following table shows additional regression results presented by the researchers in the study described above. There are two regressions. The right-hand column shows the results for all patients, including those treated with laparoscopic surgery. The left-hand column shows the results for the sample of patients who were treated without the laparoscopic surgery, and the related costs. |
Nonlaparoscopic Patients Only | All Patients | |||||
Coefficients for independent variables | ||||||
Regression intercept | $8,318 | $3,809 | ||||
Length of stay | ||||||
Coefficient* | Not significant | 850 | ||||
Standard error for the coefficient | Not applicable | 83 | ||||
Number of complications | ||||||
Coefficient | 3,914 | 1,955 | ||||
Standard error for the coefficient | 1,259 | 497 | ||||
Laparascopic | ||||||
Coefficient | Not applicable | 920 | ||||
Standard error for the coefficient | Not applicable | 347 | ||||
R-squared | 0.23 | 0.53 | ||||
*Note: All independent variables are significant at the level ofp= .05 (andt-value > 2) except for the length of stay variable in the nonlaparoscopic condition. Also, thet-value for each independent variable can be calculated by dividing the coefficient of the variable by the standard error for the coefficient of that variable. |
Required: | |||
1. | Which of the two regressions has the better reliability and precision in estimating cost? | ||
|
2. | Calculate thet-value for each of the independent variables.(Round your answers to 2 decimal places.) |
|
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