A certain HMO is attempting to show the benefits of managed health care to an insurance company. The HMO believes that certain types of doctors are more cost-effective than others.
One theory is that both primary specialty and whether the physician is a foreign or USA medical school graduate are an important factors in measuring the cost-effectiveness of physicians. To investigate this, the president obtained independent random samples of 40 HMO physicians, half foreign graduates and half USA graduates, from each of four primary specialtiesGeneral Practice (GP), Internal Medicine (IM), Pediatrics (PED), and Family Physician (FP)and recorded the total per-member, per-month charges for each. Thus, information on charges were obtained for a total of n = 160 doctors. The ANOVA results are summarized in the following table.
Source df SS MS F Value Prob > F
Specialty 3 22855 7618 60.94 .0001
Medschool 1 105 105 0.84 .6744
Interaction 3 890 297 2.38 .1348
Error 152 18950 125
Total 159 42800
Interpret the test for interaction shown in the ANOVA table. Use = 0.025
A) There is sufficient evidence at the = 0.025 level to say that primary specialty and medical school interact.
B) There is insufficient evidence at the = 0.025 level to say that primary specialty and medical school interact.
C) There is sufficient evidence at the = 0.025 level to say that primary specialty and medical school do not interact.
D) It is impossible to make conclusions about primary specialty and medical school interaction based on the given information.
Question 2
Given that x is a hypergeometric random variable with N = 15, n = 6, and r = 10, compute P(x = 0).
A) 1 B) .002 C) 0 D) .001
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