A Healthcare Executive Is Using Regression to Predict Total Revenues

question 97

Multiple Choice

A healthcare executive is using regression to predict total revenues.She has decided to include both patient length of stay and insurance type in her model.Insurance type can be grouped into the following categories: Medicare, Medicaid, Managed Care, Self-Pay, and Charity.Which of the following is true?

• A)Insurance type will be represented in the regression model by five binary variables.
• B)Insurance type will be represented in the regression model by six dummy variables.
• C)Insurance type will be represented in the regression model by five dummy variables.
• D)Insurance type will be represented in the regression model by four binary variables.

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Definitions:

Improvement

A process or action that makes something better, more efficient, or more effective.

Technology

The application of scientific knowledge for practical purposes, especially in industry.

Supply Curve

A graphical representation showing the relationship between the price of a good and the amount of it that sellers are willing to supply.

Quantity Demanded

The complete sum of a particular good or service that customers are prepared and able to buy at a given price level.