You Conduct a Randomized Study and Find in Your Sample

question 1

Multiple Choice

You conduct a randomized study and find in your sample of patients admitted to the hospital with dementia, 31% will have a return emergency room visit within three months of discharge. National data becomes available at the end of the year, which then shows that within the full population of patients with dementia who are admitted to the hospital the actual return to ED rate within three months was 29%. You conclude:

• A) Your estimate was wrong.
• B) The difference reflects sampling error.
• C) There is a statistically significant difference in the sample and population estimates.
• D) We would expect the population value to be less than the sample value because of the larger sample.

Explain the significance of von Neumann-Morgenstern utility functions in the context of risky choices.

Calculate the expected value of a gamble and compare it with certain outcomes to make rational choices.

Analyze insurance decisions and the willingness to pay for risk mitigation.

Understand how utility functions can represent preferences towards risk and how they influence gambling decisions.

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Definitions:

Time Orientation

An individual's or culture's approach to time, focusing on past, present, or future events, and influencing behavior and decision-making.

Hofstede

A framework developed by Geert Hofstede that analyzes cultural differences through five dimensions: power distance, individualism vs. collectivism, masculinity vs. femininity, uncertainty avoidance, and long-term orientation.

Value of the Dollar

The purchasing power of the U.S. dollar, indicating how much goods and services it can buy, often relative to other currencies.

U.S. Marketers

Professionals involved in the marketing activities aimed at creating, promoting, and delivering products or services in the United States market.