Suppose an insurance examiner and his team compare the results of 27126 randomly selected health insurance claims to actual patient records. Insurance claims in the study came from three types of hospitals: public, private, and university hospitals. Of the 27126 claims evaluated, 15012 were confirmed to be accurate, 4981 contained errors but did not require recoding of the healthcare services provided, and 7133 were incorrect and required recoding of services billed. Data on the status of insurance claims are shown as a 3 x 3 contingency table. Inaccurate, Incorrect, Confirmed no change recoding All accurate needed needed Public 13278 4358 6359 23995 Private 405 134 192 731 University 1329 489 582 2400 All 15012 4981 7133 27126 If you wish, you may download the data in your preferred format. CrunchIt! CSV Excel JMP Mac Text Minitab PC Text R SPSS TI Calc The examiner uses a chi-square contingency test at a significance level of a = 0.10 to evaluate his null and alternative hypotheses. Ho: There is no association between hospital type and insurance claim status. HA: There is an association between hospital type and insurance claim status. The value of his chi-square statistic x? is 10.02552 with four degrees of freedom. Complete the analysis by computing the P-value of the examiner's test and then decide whether he should reject his null hypothesis. Determine the P-value of the examiner's test using software. Report your results to two decimal places. P-value = Should the examiner reject his null hypothesis if his significance level is a = 0.10? No. Because the P-value of the test is greater than the stated alpha level of 0.10, there is insufficient evidence to reject the null hypothesis that hospital type and insurance claim status are independent. O Yes. Because the P-value of the test is less than the stated alpha level of 0.10, there is sufficient evidence to reject the null hypothesis that hospital type and insurance claim status are independent. O Yes. Because the P-value of the test is greater than the stated alpha level of 0.10, there is sufficient evidence to reject the null hypothesis that hospital type and insurance claim status are independent. O No. Because the P-value of the test is less than the stated alpha level of 0.10, there is insufficient evidence to reject the null hypothesis that hospital type and insurance claim status are independent.

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Author:Amos Gilat
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Do different types of hospitals have different practices when submitting insurance claims?
Suppose an insurance examiner and his team compare the results of 27126 randomly selected health insurance claims to actual
patient records. Insurance claims in the study came from three types of hospitals: public, private, and university hospitals. Of the
27126 claims evaluated, 15012 were confirmed to be accurate, 4981 contained errors but did not require recoding of the
healthcare services provided, and 7133 were incorrect and required recoding of services billed.
Data on the status of insurance claims are shown as a 3 x 3 contingency table.
Inaccurate,
Incorrect,
Confirmed
no change
recoding
All
accurate
needed
needed
Public
13278
4358
6359
23995
Private
405
134
192
731
University
1329
489
582
2400
All
15012
4981
7133
27126
If you wish, you may download the data in your preferred format.
CrunchIt! CSV Excel JMP Mac Text Minitab PC Text R SPSS TI Calc
The examiner uses a chi-square contingency test at a significance level of a = 0.10 to evaluate his null and
alternative hypotheses.
Ho: There is no association between hospital type and insurance claim status.
HA: There is an association between hospital type and insurance claim status.
The value of his chi-square statistic x? is 10.02552 with four degrees of freedom. Complete the analysis by computing the
P-value of the examiner's test and then decide whether he should reject his null hypothesis.
Determine the P-value of the examiner's test using software. Report your results to two decimal places.
P-value =
Should the examiner reject his null hypothesis if his significance level is a = 0.10?
O No. Because the P-value of the test is greater than the stated alpha level of 0.10, there is insufficient evidence to reject
the null hypothesis that hospital type and insurance claim status are independent.
Yes. Because the P-value of the test is less than the stated alpha level of 0.10, there is sufficient evidence to reject the
null hypothesis that hospital type and insurance claim status are independent.
Yes. Because the P-value of the test is greater than the stated alpha level of 0.10, there is sufficient evidence to reject
the null hypothesis that hospital type and insurance claim status are independent.
No. Because the P-value of the test is less than the stated alpha level of 0.10, there is insufficient evidence to reject the
null hypothesis that hospital type and insurance claim status are independent.
Transcribed Image Text:Do different types of hospitals have different practices when submitting insurance claims? Suppose an insurance examiner and his team compare the results of 27126 randomly selected health insurance claims to actual patient records. Insurance claims in the study came from three types of hospitals: public, private, and university hospitals. Of the 27126 claims evaluated, 15012 were confirmed to be accurate, 4981 contained errors but did not require recoding of the healthcare services provided, and 7133 were incorrect and required recoding of services billed. Data on the status of insurance claims are shown as a 3 x 3 contingency table. Inaccurate, Incorrect, Confirmed no change recoding All accurate needed needed Public 13278 4358 6359 23995 Private 405 134 192 731 University 1329 489 582 2400 All 15012 4981 7133 27126 If you wish, you may download the data in your preferred format. CrunchIt! CSV Excel JMP Mac Text Minitab PC Text R SPSS TI Calc The examiner uses a chi-square contingency test at a significance level of a = 0.10 to evaluate his null and alternative hypotheses. Ho: There is no association between hospital type and insurance claim status. HA: There is an association between hospital type and insurance claim status. The value of his chi-square statistic x? is 10.02552 with four degrees of freedom. Complete the analysis by computing the P-value of the examiner's test and then decide whether he should reject his null hypothesis. Determine the P-value of the examiner's test using software. Report your results to two decimal places. P-value = Should the examiner reject his null hypothesis if his significance level is a = 0.10? O No. Because the P-value of the test is greater than the stated alpha level of 0.10, there is insufficient evidence to reject the null hypothesis that hospital type and insurance claim status are independent. Yes. Because the P-value of the test is less than the stated alpha level of 0.10, there is sufficient evidence to reject the null hypothesis that hospital type and insurance claim status are independent. Yes. Because the P-value of the test is greater than the stated alpha level of 0.10, there is sufficient evidence to reject the null hypothesis that hospital type and insurance claim status are independent. No. Because the P-value of the test is less than the stated alpha level of 0.10, there is insufficient evidence to reject the null hypothesis that hospital type and insurance claim status are independent.
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