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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 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 70 patients, showed the following regression results: R-squared: 52% Constant term: $3,809 Coefficients and t-values for independent variables: 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.) Length of stay (measured in days)
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