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:

Dividend Payout Ratio

The fraction of earnings a company pays out to its shareholders as dividends, represented as a percentage of its net income.

Financial Statement

Formal records of the financial activities and position of a business, person, or other entity, typically including balance sheet, income statement, and cash flow statement.

External Financing

External financing is the process of obtaining funds from outside sources, such as banks, investors, or financial markets, to support a company's operations or expansion.

Sales Capacity

Refers to the maximum level of sales that can be achieved within a given period under normal operating conditions, considering the company's resources and market demand.