A Certain HMO Is Attempting to Show the Benefits of Managed

question 83

Multiple Choice

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 21 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 63 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 \(\mathrm { df } = 3\), denominator \(\mathrm { df } = 60\)
• B) numerator \(\mathrm { df } = 61\), denominator \(\mathrm { df } = 2\)
• C) numerator \(\mathrm { df } = 2\), denominator \(\mathrm { df } = 60\)
• D) numerator \(\mathrm { df } = 61\), denominator \(\mathrm { df } = 3\)

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Definitions:

Record Date

The specific date set by a company on which the shareholders must be on the company's books to be eligible to receive a dividend or vote.

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Elite Club

A prestigious group or organization that is exclusive to members who meet specific, often high, criteria.

Dividend Payments

The distribution of a portion of a company's earnings to its shareholders, typically in the form of cash or stock.