A Certain HMO Is Attempting to Show the Benefits of Managed

question 28

Multiple Choice

A certain HMO is attempting to show the benefits of managed care to an insurance company. The HMObelieves that certain types of doctors are more cost-effective than others. One theory is that Certification Levelis an important factor in measuring the cost-effectiveness of physicians. To investigate this, the HMO obtainedindependent random samples of 19 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 19 physicians) . In order to compare the mean charges for the threegroups, the data will be subjected to an analysis of variance.Write the null hypothesis tested by the ANOVA.

• A) \(\mathrm { H } _ { 0 } : \mu _ { \mathrm { C } } = \mu _ { \mathrm { E } } = \mu _ { \mathrm { I } }\)
• B) \(\mathrm { H } _ { 0 } : \beta _ { 1 } = \beta _ { 2 } = \beta _ { 3 } = 0\)
• C) \(\mathrm { H } _ { 0 } : \mu _ { \mathrm { C } } = \mu _ { \mathrm { E } } = \mu _ { \mathrm { I } } = 0\)
• D) \(\mathrm { H } _ { 0 } : \mathrm { p } _ { 1 } = \mathrm { p } _ { 2 } = \mathrm { p } _ { 3 }\)

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Definitions:

Rate of Return

The gain or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.

Withdraw

To withdraw means to remove funds from an account or investment, or to take back an offer or statement.

Retire

To retire means to leave one's job or profession, often due to reaching a certain age or for health reasons, and generally implies ending regular employment to enjoy leisure, hobbies, or other interests.

Invested Funds

Money that has been allocated into various types of assets or investments with the expectation of generating returns.