A Certain Hmo Is Attempting To Show The Benefits Of Managed Care To An Insurance Company The Hmo Believes That Certain 1 (59.69 KiB) Viewed 28 times
A Certain Hmo Is Attempting To Show The Benefits Of Managed Care To An Insurance Company The Hmo Believes That Certain 2 (71.31 KiB) Viewed 28 times
A certain HMO is attempting to show the benefits of managed care to an insurance company. The HMO believes that certain types of doctors are more cost-effective than others. One theory is that Certification Level is an important factor in measuring the cost-effectiveness of physicians. To investigate this, the HMO obtained independent random samples of 20 physicians from each of the three certification levels -- Board certified (C): Uncertified, board eligible (E); and Uncertified, board ineligible (1)-- and recorded the total per member per month charges for each (a total of 60 physicians). In order to compare the mean charges for the three groups, the data will be subjected to an analysis of variance. The results of the ANOVA are summarized in the following table. Use a significance level of a = 0.05.
dF Source of Error Sum of Squares (SS) Mean F Stat F- P- Square Critical value (MS) 5373.216 2 2686.608 20.73 3.15 0.0001 Groups (Between) 7387.20 57 129.60 Error (Within) Total 12760.416 59 a) Identify the null and alternative hypotheses. b) Is there a significant difference between the groups? Explain what you used to make this decision. c) Interpret the findings. d) is a follow-up test needed? Why or why not?
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