Solve the Problem. -A Certain HMO Is Attempting to Show the Benefits of the Benefits

question 23

Multiple Choice

Solve the problem.
-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 20 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 60 physicians) . In order to compare the mean charges for the three groups, the data will be subjected to an analysis of variance.
Write the alternative hypothesis tested by the ANOVA.

• A)The three certification levels do not all have the same mean charge.
• B)The three certification levels do not have the same mean charge.
• C)The 60 physicians all have the same charge.
• D)One certification group has the same mean charge as a different certification group.

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Definitions:

Income Receivers

Individuals or entities that receive earnings from various sources, including employment, investments, and transfers.

Total Utility

The total satisfaction or benefit that a consumer gets from consuming a particular quantity of goods or services.

Income Redistribution

The transfer of income from certain individuals or groups to others through mechanisms like taxation, welfare, and subsidies to promote economic fairness.

Incentives To Produce

Factors or motivations that encourage firms or individuals to engage in production, including profits, market demand, or regulatory conditions.