Suppose an insurance company wishes to determine if the amount of time a patient spends in the hospital is affected by whether or not the patient has medical insurance. The insurance company suspects that since insurance pays most of the hospital bills, a doctor might keep a person who has insurance in the hospital longer than if that person had to pay all of the expenses because he/she did not have insurance. In order to test these suspicions, the company randomly samples the average stay (in days) of both insured and uninsured patients in a number of hospitals and comes up with the following data. Assume the patient data are normally distributed and the population standard deviations are equal.(sorry this is the best example I can give for the problem) the numbers are actually supposed to be on the lower right side (like a square root I guess)Insurance: xbar 1=17.3, s1 =1.2, n1=29No Insurance: xbar 2=15.1, s2=2.1, n2=15 Does the data provide sufficient evidence to support the insurance company’s claim? Answer this question by performing a hypothesis test with α=.05 and calculating a 95% confidence interval for the true mean difference.

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Answered: Suppose an insurance company wishes to…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Suppose an insurance company wishes to determine if the amount of time a patient spends in the hospital is affected by whether or not the patient has medical insurance. The insurance company suspects that since insurance pays most of the hospital bills, a doctor might keep a person who has insurance in the hospital longer than if that person had to pay all of the expenses because he/she did not have insurance. In order to test these suspicions, the company randomly samples the average stay (in days) of both insured and uninsured patients in a number of hospitals and comes up with the following data. Assume the patient data are normally distributed and the population standard deviations are equal.

(sorry this is the best example I can give for the problem) the numbers are actually supposed to be on the lower right side (like a square root I guess)

Insurance: xbar 1=17.3, s1 =1.2, n1=29

No Insurance: xbar 2=15.1, s2=2.1, n2=15

Does the data provide sufficient evidence to support the insurance company’s claim? Answer this question by performing a hypothesis test with α=.05 and calculating a 95% confidence interval for the true mean difference.

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

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