Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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, 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 research, based on 51 patients, showed the following regression results:
R-squared: 56%
Constant term: $3,752
Coefficients and t-values for independent variables:

Length of Stay Complication Laparoscope
Coefficient $675 $1,951 $924
t-value 10.19 4.72 2.56

Required:
1.

What is the estimated cost for a patient whose surgery has complications and who stays in the hospital five days, and whose surgery requires a laparoscope?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mastering 21st Century Enterprise Risk Management

Authors: Gregory M Carroll

1st Edition

1483510441, 9781483510446

More Books

Students also viewed these Accounting questions

Question

5. Give examples of binary thinking.

Answered: 1 week ago