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Medicare Fines In an effort to reduce the number of hospital-acquired conditions (such as infection resulting from the hospital stay), Medicare officials score hospitals on a 10-point scale with a lower score representing a better patient track record. The federal government plans to reduce Medicare payments to those hospitals with the worst scores. The following data represent the scores received by Illinois hospitals.
Score | Frequency |
1–1.9 | 3 |
2–2.9 | 12 |
3–3 9 | 16 |
4–4 9 | 23 |
5–5.9 | 23 |
6–6.9 | 21 |
7–7.9 | 17 |
8–8.9 | 5 |
9–10 | 5 |
Total | 125 |
Source: Center for Medicare and Medicaid Services |
- a. Determine the
probability that a randomly selected hospital in Illinois has a score between 5 and 5.9. - b. Determine the probability that a randomly selected hospital in Illinois has a score that is not between 5 and 5.9.
- c. Determine the probability that a randomly selected hospital in Illinois has a score less than 9.
- d. Suppose Medicare plans to reduce Medicare payments to any hospital with a score of 8 or higher. What is the probability a randomly selected hospital in Illinois will experience reduced Medicare payments? Interpret this result. Is it unusual?
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