Hospital Readmission A hospital readmission is an episode when a patient who has been discharged from a hospital is readmitted again within a certain period. Nationally the readmission rate for patients with pneumonia is 17 % . A hospital was interested in knowing whether their readmission rate for pneumonia was less than the national percentage. They found 11 patients out of 70 treated for pneumonia in a two-month period were readmitted. a. What is p ^ , the sample proportion of readmission? b. Write the null and alternative hypotheses. c. Find the value of the test statistic and explain it in context. d. The p-value associated with this test statistic is 0.39. Explain the meaning of the p-value in this context. Based on this result, does the p-value indicate the null hypothesis should be doubted?
Hospital Readmission A hospital readmission is an episode when a patient who has been discharged from a hospital is readmitted again within a certain period. Nationally the readmission rate for patients with pneumonia is 17 % . A hospital was interested in knowing whether their readmission rate for pneumonia was less than the national percentage. They found 11 patients out of 70 treated for pneumonia in a two-month period were readmitted. a. What is p ^ , the sample proportion of readmission? b. Write the null and alternative hypotheses. c. Find the value of the test statistic and explain it in context. d. The p-value associated with this test statistic is 0.39. Explain the meaning of the p-value in this context. Based on this result, does the p-value indicate the null hypothesis should be doubted?
Solution Summary: The author explains the null and alternative hypotheses for determining the readmission rate of the hospital.
Hospital Readmission A hospital readmission is an episode when a patient who has been discharged from a hospital is readmitted again within a certain period. Nationally the readmission rate for patients with pneumonia is
17
%
.
A hospital was interested in knowing whether their readmission rate for pneumonia was less than the national percentage. They found 11 patients out of 70 treated for pneumonia in a two-month period were readmitted.
a. What is
p
^
, the sample proportion of readmission?
b. Write the null and alternative hypotheses.
c. Find the value of the test statistic and explain it in context.
d. The p-value associated with this test statistic is
0.39.
Explain the meaning of the p-value in this context. Based on this result, does the p-value indicate the null hypothesis should be doubted?
Problem 1.We consider a two-period binomial model with the following properties: each period lastsone (1) year and the current stock price is S0 = 4. On each period, the stock price doubleswhen it moves up and is reduced by half when it moves down. The annual interest rateon the money market is 25%.
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What is the standard scores associated to the left of z is 0.1446
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