Your staff has collected cross-sectional data on the determinants of average length of stay in various hospitals. A staff member hands you the following or regression results.

Regression Results for the Impact of Various Factors on Average Hospital Length of Stay

Independent Variable Coefficient t-Statistics

Intercept Term 0.038 3.56 *

Occupancy Rate -0.043 2.95*

Teaching Hospital or 0.167 1.89

Nonteaching hospital

(1=teaching, 0= others)

Number of Hospital Beds -0.246 2.58*

Number of physicians 0.135 3.14*

Region (1= central, 0=others) 0.054 2.47*

R-square = 0.437

An asterisk indicates that the coefficient is statistically significant in a two-tailed test at the

95% confidence level.

(a) interpret each independent variable's coefficient and t-statistic (Including, coefficient, significance and if the conclusion reliable or not)

(b) Interpret the R-square term