Consider a questionable hospital for which XRay = 56,194, BedDays = 14,077.88, a

Question

Consider a questionable hospital for which XRay = 56,194, BedDays = 14,077.88, and LengthStay = 6.89. A 95 percent prediction interval for the labor hours corresponding to this combination of values of the independent variables is given on the following MegaStat output:

Find and report the prediction interval on the output. Then, use this interval to determine if the actual number of labor hours used by the questionable hospital (y = 13,430.71) is unusually low or high.(Report 95% P.I. values to 4 decimal place and y to 2 decimal places.)

95% P.I.: [ ,  ]

y =

95% Confidence Interval 95% Prediction Interval Predicted lower upper lower upper Leverage 15,955.4222 15,399.6938 16,511.1505 14,915.3759 16,995.4685 .3996

Explanation / Answer

95% P.I   [14,915.3759 , 16,995.4685]

As we see, y = 13,430.71 is below the lower limit of this interval ( 14,915.3759 ).

Thus,

y = 13,430.71 is BELOW the LOWER LIMIT of the interval; this y-value is UNUSUALLY LOW

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