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

image text in transcribedimage text in transcribed

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 ax Length of stay (measured in days), plus bx Presence of one or more complications (= 1 if true, O if false), plus c* Use of a laparoscope (= 1 if true, 0 if false) where a, b, care 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 63 patients, showed the following regression results: R-squared: 56% Constant term: $3,158 Coefficients and t-values for independent variables: Length of Stay $ 887 7.51 Coefficient t-value Complications Laparoscope $1,912 $ 928 5.30 2.26 Required: 1. What is the estimated cost for a patient whose surgery has complications and who stays in the hospital 4 days, and whose surgery requires a laparoscope? Estimated cost 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.) Use of a laparoscope Complications were present 2 Length of stay (measured in days)

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

Finance For Non-Finance Executives

Authors: Anurag Singal

1st Edition

1952538327, 9781952538322

More Books

Students also viewed these Accounting questions

Question

2 What is the philosophy of performance management?

Answered: 1 week ago