Question

In: Statistics and Probability

A certain HMO is attempting to show the benefits of managed care to an insurance company....

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 22 physicians from each of the three certification levels—Board certified (C); Uncertified, board eligible (E); and Uncertified, board ineligible (I)—and recorded the total per-member, per-month charges for each (a total of 66 physicians). In order to compare the mean charges for the three groups, the data will be subjected to an analysis of variance. Give the degrees of freedom appropriate for conducting the ANOVA F-test.

A. numerator df = 2, denominator df = 63

B.numerator df = 3, denominator df = 63

C. numerator df = 64, denominator df = 3

D. numerator df = 64, denominator df = 2

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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 22 physicians from each of the three certification levels—Board certified (C); Uncertified, board eligible (E); and Uncertified, board ineligible (I)—and recorded the total per-member, per-month charges for each (a total of 66 physicians). In order to compare the mean charges for the three groups, the data will be subjected to an analysis of variance. Give the degrees of freedom appropriate for conducting the ANOVA F-test.

Correct option: A. numerator df = 2, denominator df = 63

B.numerator df = 3, denominator df = 63

C. numerator df = 64, denominator df = 3

D. numerator df = 64, denominator df = 2

N= 66

Total df = N-1= 65

numerator df = number of groups -1 = 3-1=2

denominator df = total df - numerator df = 65-2=63


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