You Are Interested in Examining the Factors That Determine the Average

question 22

Essay

You are interested in examining the factors that determine the average length of stay by patients in hospitals across states.You collect data on the following variables:
Y = statewide average hospital stay
X₁ = median state income
X₂ = 1 if the state is in the Northeast,0 otherwise
X₃ = 1 if the state is in the South,0 otherwise
X₄ = 1 the state is in the Midwest,0 otherwise
X₅ = 1 the state is in the West,0 otherwise
Based on the data above,you run the following regression: Y = β₀ + β₁X₁ + β₂X₂ + β₃X₃ + β₄X₄.
Identify the length of stay for each of the four regions using the population slopes.

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Definitions:

Life Tenant

An individual who has the right to use and benefit from a property during their lifetime, but does not own the property outright.

Trust Investment

A financial arrangement where assets are managed by one party for the benefit of another under a legally established trust.

Trust Instrument

A legal document that outlines the terms and conditions under which a trust operates, specifying how assets placed in trust are to be managed and distributed.

Corpus

The principal amount in a trust or estate as distinct from interest or dividends earned on that principal amount.