This database contains observations for 11 variables on US h

This database contains observations for 11 variables on U.S. hospitals. These variables include Geographic Region, Control, Service, Number of Beds, Number of Admissions, Census, Number of Outpatients, Number of Births, Total Expenditures, Payroll Expenditures, and Personnel.

Geographic Region variable is coded from 1 to 7, and the numbers represent the following regions:

1 = South

2 = Northeast

3 = Midwest

4 = Southwest

5 = Rocky Mountain

6 = California

7 = Northwest

Control is a type of ownership. Four categories of control are included in the database:

1 = government, nonfederal

2 = nongovernment, not-for-profit

3 = for-profit

4 = federal government

Service is the type of hospital. The two types of hospitals used in this database are:

1 = general medical

2 = psychiatric

Total Expenditures and Payroll variables are in units of $1,000.

Questions: The administrators would like you to use the database to answer these questions:

1. Determine the sample proportion of general medical under the variable “Service.”

2. From the statistic in #1 above, construct a 95% confidence interval to estimate the population proportion of hospitals that are general medical.

3. What is the point estimate for general medical hospitals?

4. How much error is there in the interval in #2?

5. Test the hypothesis, using = 0.01, that the average US hospital has a mean of more than 700 births per year.

6. On average, do US hospitals employ fewer than 900 personnel? Use = 0.10 to test this figure as the alternative hypothesis.

Solution