To Budget for the Coming Year, a Community Hospital Must

question 29

Multiple Choice

To budget for the coming year, a community hospital must estimate the proportion of treated patients who will not be able to make payment in full.In a random sample of 2568 patients treated in the previous year, 381 failed to make payment in full.What is an 80% confidence interval for the proportion of patients who will not make full payment to the hospital?

• A) (0.137, 0.160)
• B) (0.125, 0.162)
• C) (0.139, 0.157)
• D) (0.132, 0.165)

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Definitions:

Least-Squares Regression

A statistical method used to determine the line of best fit by minimizing the sum of the squares of the vertical distances of the points from the line.

Least-Squares Regression

A statistical method used to determine the best-fitting line through a set of points, minimizing the sum of the squares of the distances of the points from the line.

Statistical Evidence

Data collected and analyzed for the purpose of supporting a conclusion or hypothesis.

Step-Variable Cost

The cost of a resource that is obtained in large chunks and that increases and decreases only in response to fairly wide changes in activity.