What is the proper interpretation of the ANOVA analysis below? An HMO wants to s

Question

What is the proper interpretation of the ANOVA analysis below? An HMO wants to show the benefits of managed care to an insurance company. The HMO believes that Certification Level is an important factor in measuring the cost-effectiveness of physicians. To find out, the HMO obtained independent random samples of 20 physicians from each of three certification levels: 1) Board certified; 2) Uncertified-board eligible; and 3) Uncertified- board ineligible (60 physicians total). The HMO recorded the charges per member for each physician. The ANOVA analysis had a p-value of 0.0001. Use alpha = 0.01. a. The mean charges of the three groups of physicians are EQUAL. b. The mean charges of the three groups of physicians DIFFER. c. The variances of the charges of the three groups of physicians DIFFER. d. The model was rejected as being not statistically useful.

Explanation / Answer

Since p-value < 0.01, we reject Ho and conclude the 3 groups of physicians differ significantly.

Option b.

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