A Certain HMO Is Attempting to Show the Benefits of Managed

question 44

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 29 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 87
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 \(\mathrm { df } = 84\)
• B) numerator \(\mathrm { df } = 2\), denominator \(\mathrm { df } = 84\)
• C) numerator \(\mathrm { df } = 85\), denominator \(\mathrm { df } = 3\)
• D) numerator \(\mathrm { df } = 85\), denominator \(\mathrm { df } = 2\)

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Definitions:

Composite Methods

Depreciation techniques that combine multiple assets into a single group or pool and apply a uniform depreciation rate to the collective group, irrespective of individual asset life.

Depreciation Expense

Distributing the expense of a physical asset throughout its serviceable duration.

Residual Value

The estimated amount that an asset is expected to realize upon the end of its useful life, after deducting the cost of disposal.