Health Insurers and the Federal Government Are Both Putting Pressure

question 87

Multiple Choice

Health insurers and the federal government are both putting pressure on hospitals to shorten the average length of stay (LOS) of their patients.In 1996,the average LOS for non-heart patients was 4.6 days.A random sample of 20 hospitals in one state had a mean LOS for non-heart patients in 2000 of 3.8 days and a standard deviation of 1.2 days.How large a sample of hospitals would we need to be 99 percent confident that the sample mean is within 0.5 days of the population mean?

• A)3
• B)7
• C)32
• D)48
• E)96

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Definitions:

Amortization

The gradual reduction of a debt over a period of time through regular payments of principal and interest.

Sales Commissions

Fees paid to salespersons for generating sales, typically calculated as a percentage of the sale amount.

Depreciation Measures

The methods or calculations used to determine the amount by which an asset's value decreases over time, such as straight-line or declining balance methods.

EBITDA

Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of a company's operational performance.