Problems

  1. How does gender influence total costs?
    1. Conduct a test of hypothesis to determine if there is a difference on average for total costs between males and females?
    2. Create a multiple regression that predicts total costs from gender and length of stay. When a nominal variable with two levels is included in a multiple regression two parallel lines are estimated, one for each level. The regression coefficient for the nominal variable represents ½ of the distance between the two lines or one half of the effect of gender on total costs.
    3. Compare the difference in the gender mean total costs found in part a with the gender effect (twice the gender regression coefficient) in part b. Why do they differ?
  2. The Alice Hyde Medical Center is a 76-bed hospital located in Malone, New York, and is also a part of the University of Vermont Health Network.
    1. Create a JMP data table from the file ADK_Newborns_2014.jmp that contains only the data for infants born at the Alice Hyde Medical Center.
    2. Conduct two simple regression analyses, one that predicts total costs from length of stay and one that predicts total costs from birthweight (lbs). Compare these regressions to those from the CVPH found in the case “Building a Simple Predictive Model for Health Care Costs for Newborns in Adirondack Hospitals.”
    3. Perform a multiple regression for the Alice Hyde Medical Center newborn total costs with length of stay and birthweight (lbs) as predictors. Compare your results to those from CVPH found in this case.
  3. Select another New York State hospital outside of the Capital/Adirondack health services area and download the data for newborns from SPARCS for 2014. Repeat the analysis of this case and compare your results to those of the Champlain Valley Physicians Hospital.
  4. Explore JMP’s Partition platform (Analyze > Predictive Modeling > Partition) with the Decision Tree option to predict total costs from the available data in CVPH_Newborns_2014.jmp.
    1. How does this method compare to multiple linear regression?
    2. How do the results compare between the two methods?
Last updated: October 12, 2017
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