20 Mar Linear Regression Model
• Please run the following four models and complete the tables. Please use Excel and the Analysis ToolPak. Eliminate any data rows with missing values or impute the missing values before you run the Regression to avoid errors. (The “Total hospital beds” variable has a few missing values).
Model 1:
Run a multiple linear regression model to explain/predict Net Hospital Benefits (Net Revenue). For your first model, the dependent variable is Net Hospital Benefits and the independent or predictor variables are Total Hospital Beds and whether the hospital is Teaching or not. Complete Table 1.
Table 1-Model 1-To explain/predict Net Hospital Benefits – 2011, 2012
Coef. ST. ERR T Stat P-values Lower 95% Upper 95%
Intercept
Total Hospital beds
Teaching Hospital Dummy
R Square=
Model 2:
Run a multiple linear regression model and explain/predict Net Hospital Benefits (Net Revenue). In the 2nd model, the dependent variable is
Net Hospital Benefits and the independent or predictor variables are Total Hospital Beds and whether the hospital is Non-Teaching or not. You may convert the Teaching Hospital column into a Non-Teaching column by subtracting 1 and changing the sign of the data. Complete Table 2.
Table 2-Model 2-To explain/predict Net Hospital Benefits – 2011, 2012
Coef. ST. ERR T Stat P-values Lower 95% Upper 95%
Intercept
Total Hospital beds
Non-Teaching Hospital Dummy
R Square=
Use the results from model 1 and model 2 to compare the results between teaching and non-teaching hospitals.
Model 3:
Run a multiple linear regression model and explain/predict Net Hospital Benefits (Net Revenue). In the 3rd model, the dependent variable is
Net Hospital Benefits and the independent or predictor variables are Total Hospital Beds, whether the hospital is Teaching or not, Ratio of Medicare Discharges, and Ratio of Medicaid Discharges. Complete Table 3.
Table 3-Model 3-To explain/predict Net Hospital Benefits – 2011, 2012
Coef. ST. ERR T Stat P-values Lower 95% Upper 95%
Intercept
Total Hospital beds
Teaching Hospital Dummy
Ratio of Medicare discharges
Ratio of Medicaid discharges
R Square=
How do you evaluate the impact of having higher Medicare and Medicaid patients on hospital net-benefit in teaching hospitals?
Model 4:
Run a multiple linear regression model and explain/predict Net Hospital Benefits (Net Revenue). In the 4th model, the dependent variable is
Net Hospital Benefits and the independent or predictor variables are Total Hospital Beds, whether the hospital is Non-Teaching or not, Ratio of Medicare Discharges, and Ratio of Medicaid Discharges. Complete Table 4.
Table 4-Model 4-To explain/predict Net Hospital Benefits – 2011, 2012
Coef. ST. ERR T Stat P-values Lower 95% Upper 95%
Intercept
Total Hospital beds
Non-Teaching Hospital Dummy
Ratio of Medicare discharges
Ratio of Medicaid discharges
R Square=
How do you evaluate the impact of having higher Medicare and Medicaid patients on hospital net-benefit in non-teaching hospitals?
Based on your finding please recommend 3 policies to improve hospital performance. Please make sure to use the final model for your recommendation.
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