A Healthcare Executive Is Using Regression to Predict Total Revenues

question 33

Multiple Choice

A healthcare executive is using regression to predict total revenues.She is deciding whether or not to include both patient length of stay and insurance type in her model.Her first regression model only included patient length of stay.The resulting r² was .83, with an adjusted r² of .82 and her level of significance was .003.In the second model, she included both patient length of stay and insurance type.The r² was .84 and the adjusted r² was .80 for the second model and the level of significance did not change.Which of the following statements is true?

• A)The second model is a better model.
• B)The first model is a better model.
• C)The r² increased when additional variables were added because these variables significantly contribute to the prediction of total revenues.
• D)The adjusted r² always increases when additional variables are added to the model.

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Definitions:

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An artistic tradition from the ancient Minoan civilization on Crete, known for its vibrant frescoes, pottery, and sculptures that reflect a society rich in maritime culture and mythology.

Nature

The phenomena of the physical world collectively, including plants, animals, landscapes, and other features and products of the earth, as opposed to humans or human creations.

Snake Goddess

A figurine or symbol observed in Minoan civilization, representing a deity or priestess associated with snakes, possibly indicative of regeneration, fertility, or protection.

Faience

A low-fired opaque glasslike silicate.