You are studying DRG 105, Cardiac Valve Procedures and Other Major Cardiothoracic Procedures without Cardiac Catheterization, for Critical Care Hospital. Using the data provided in Table 8A1,

2. Construct a regression model for predicting total charges from length of stay for DRG 105.

a. State the null and alternative hypotheses and alpha level.

b. Prepare a scatter diagram with the regression line for the two variables.

c. What are the r and r2? What is the importance of the r and r2 results?

d. What is the regression equation?

e. What are your conclusions?

Table 8A1 Case Summaries for DRG 105, Cardiac Valve Procedures and Other Major Cardiothoracic Procedures without Cardiac Catheterization

	Gender	Age	LOS	Charges	Payor
1	Female	47	20	$91,683	Medicaid
2	Female	75	43	$93,708	Medicare
3	Female	84	7	$21,446	Medicare
4	Female	50	13	$37,797	Medicare
5	Male	77	14	$54,364	Medicare
6	Male	57	4	$17,626	Medicare
7	Male	73	4	$12,832	Medicare
8	Female	56	1	$36,153	Medicaid
9	Male	69	1	$14,907	Medicaid
10	Female	81	23	$104,148	Medicare
11	Male	21	5	$21,423	Medicaid
12	Female	37	5	$24,971	Medicaid
13	Female	69	4	$17,022	Medicare
14	Female	89	17	$50,652	Medicare
15	Male	28	35	$186,496	Medicaid
16	Male	47	6	$24,441	Medicaid
17	Male	87	11	$35,349	Medicare
18	Female	85	5	$22,155	Medicare
19	Male	56	5	$24,455	Managed Care
20	Male	45	11	$36,401	Medicaid
21	Male	82	6	$25,783	Medicare
22	Female	65	10	$37,055	Managed Care
23	Male	67	4	$19,236	Medicare
24	Male	59	23	$60,132	Other
25	Female	67	7	$35,777	Medicare
26	Male	53	4	$19,972	Managed Care
27	Male	71	7	$25,409	Medicare
28	Female	79	6	$281,140	Medicare
29	Male	63	1	$41,283	Medicaid
30	Male	53	19	$71,439	Medicaid
31	Female	75	9	$33,735	Medicare
32	Female	68	9	$37,830	Gov Mngd Care
33	Male	37	4	$22,311	Medicaid
Total N	33	33	33	33