Use the Following to Answer Question(s): Third-Party Payers

question 41

Multiple Choice

Use the following to answer question(s) : Third-Party Payers

-(Exhibit: Third-Party Payers) When the price of $20 per visit becomes available to the consumer because of insurance:

• A) health-care costs become $180 million, of which $60 million is paid by consumers and $120 million is paid by insurance.
• B) health-care costs become $180 million, of which $120 million is paid by consumers and $60 million is paid by insurance.
• C) the new quantity of physician office visits is 1 million visits per week.
• D) both A and C are true.

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Definitions:

Sample Variance

The measure of variation or spread within a sample set of data, calculated by averaging the squared deviations from the sample mean.

Population Variance

A measure of the dispersion of a set of data points in a population from their mean value, representing how spread out the population values are.

Unbiased Estimator

A statistical estimator whose expected value equals the true value of the parameter it estimates.

Sample Mean

The arithmetic average of a set of sample values, used as an estimate of the population mean.