Southside Hospital Is Trying to Get a Better Idea of the Costs

question 30

Essay

Southside Hospital is trying to get a better idea of the costs in its cardiac surgical unit. Unit cost data for supplies, labor, etc. have been collected for a three-year period. After analyzing the data using Excel, the following output was generated, based on 1,500 procedures.

Intercept = $2,169, 000
Coefficient on procedures $972
Correlation coefficient = 0.448
R² = 0.189
The controller asks you for advice on whether to rely on this estimate. Based on the output, what would you say?

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Definitions:

Productive Cough

A cough that is accompanied by the expulsion of mucus or phlegm from the respiratory tract.

Dyspnea

A medical term for the sensation of difficulty or discomfort in breathing, often described as feeling short of breath.

Common Cold

The common cold is a viral infectious disease of the upper respiratory tract that primarily affects the nose.

Influenza

An extremely infectious virus that targets the respiratory tract, widely referred to as influenza.