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A certain HMO is attempting to show the benefits of managed care to an insurance

ID: 3127425 • Letter: A

Question

A certain HMO is attempting to show the benefits of managed care to an insurance company The HMO believes that certain types of doctors are more cost-effective than others. One theory is that certification level is an important factor in measuring the cost-effectiveness of physicians. To investigate this, the HMO obtained independent random samples of 19 physicians from each of the three certification levels ( Board certified (C); Uncertified, board eligible (E), and Uncertified, board ineligible (I)) and recorded the total per-member, per-month charges for each (a total of 57 physicians). Identify the treatments for this experiment. OA the total per-member, per-month charge OB. the 57 physicians OC the HMO OD the three certification groups: C, E, and I

Explanation / Answer

1.

OPTION D: The three certification groups: C, E, I

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2.

If F exceeds Fcrit, we reject Ho.

Hence, A and C are false, and it is

OPTION B: If the null hypothesis is rejected, it may still be possible that two or more of the population means are equal. [ANSWER, B]

Note that ANOVA simply says at least 2 means are not equal, but it doesn't say that all of them are different.

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