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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 ax Length of stay (measured in days), plus b* Presence of one or more complications (= 1 if true, o if false), plus c* Use of a laparoscope (= 1 if true, o 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 58 patients, showed the following regression results: R-squared: 57% Constant term: $3,124 Coefficients and t-values for independent variables: Coefficient t-value Length of Stay $ 791 10.25 Complications Laparoscope $ 1,767 $ 958 5.86 3.38 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? Estimated cost 8,216 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 Length of stay (measured in days) Complications were present
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