Health Economics
14th Edition
ISBN: 9781137029966
Author: Jay Bhattacharya
Publisher: SPRINGER NATURE CUSTOMER SERVICE
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Question
Chapter 6, Problem 1E
To determine
Check the statement: Hospital admission rate has dropped in the past two decades is true or false.
Expert Solution & Answer
Explanation of Solution
It is true that the hospital admission rate has dropped in the past two decades. This is due to the increase in the US population. The US population faces an increase from 230 million (1981) to above 320 million in 2016. Also, the middle age for the people rises from 30 to 37 from 1981 to 2016. The annual number of admissions to the US hospital can be illustrated as follows:
According to the data, it shows a decline tendency in the hospitalization after the implementation of Diagnostic Related Groups (DRGs). The annual number of admissions to U.S hospital on 2011 is nearly 35 million and going onward the number of hospital admission shows a decline and below 35 million.
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Tasks
Exercise 1
Assess the following functions:
1. f(x)= x2+6x+2
2.f '(x)=10x-2x2+5
a. Find the stationary points. (5 marks)
b. Determine whether the stationary point is a maximum or minimum. (5 marks)
c. Draw the corresponding curves (5 marks)
Problem 2:
The sales data over the last 10 years for the Acme Hardware Store are as follows:
2003
$230,000
2008
$526,000
2004
276,000
2009
605,000
2005
328,000
2010
690,000
2006
388,000
2011
779,000
2007
453,000
2012
873,000
1. Calculate the compound growth rate for the period of 2003 to 2012.
2. Based on your answer to part a, forecast sales for both 2013 and 2014.
3. Now calculate the compound growth rate for the period of 2007 to 2012.
1. Based on your answer to part e, forecast sales for both 2013 and 2014.
5. What is the major reason for the differences in your answers to parts b and d? If you were to
make your own projections, what would you forecast? (Drawing a graph is very helpful.)
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