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Hospital A receives cost-based reimbursement, and Hospital B receives prospectiv

ID: 3171163 • Letter: H

Question

Hospital A receives cost-based reimbursement, and Hospital B receives prospective payment reimbursement. The average operating margin for Hospital A is 1.8% and 2.1% for Hospital B. A comparison of the average operating margins results in a 95% confidence interval of -0.34 to -0.27 two tailed test. How was the data used? 1) to determine if prospective reimbursement causes a signicant decrease in the average operating margin. 2) to determine if there is a significant difference in the average operating margins for each hospital. 3) to determine if there is a significant difference between the outlying operating margins for each hospital. 4) To determine if cost-based reimbursement causes a significan increase in average operating margin.

Explanation / Answer

The answer will be

2) to determine if there is significant difference between the average operating margins for each hospital