Test a Hypothesis Regarding Three or More Means Using One $\mathrm { H } _ { 0 } : \mu _ { \mathrm { C } } = \mu _ { \mathrm { E } } = \mu _ { \mathrm { I } }$

question 34

Multiple Choice

Test a Hypothesis Regarding Three or More Means Using One -Way ANOVA
-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 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 three groups, 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) \(\mathrm { H } _ { 0 } : \mathrm { p } 1 = \mathrm { p } 2 = \mathrm { p } 3\)

---

Definitions:

Start-Up

A new venture that is trying to discover a profitable business model for future success.

New Venture

An entrepreneurial endeavor that entails the creation and establishment of a new business or enterprise.

Entrepreneur

An individual who, rather than working as an employee, runs a small business and assumes all the risks and rewards of a given business venture, idea, or goods or services offered for sale.

Own Bosses

A term used to describe individuals who run their own businesses, making decisions independently rather than working for someone else as an employee.