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 = 13,395.00) is unusually low or high. (Report 95% P.I. values to 4 decimal place and y to 2 decimal places.)

95% Confidence Interval 95% Prediction Interval Predicted Lower Upper Lower Upper Leverage 15,961.3475 15,414.9592 16,507.7357 14,939.7784 16,982.9165 .4007

Explanation / Answer

95% P.I.: [14,939.7784,   16,982.9165]

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As we see, y = 13,395.00 is below the lower limit of this interval (14939.7784).

Thus,

y = 13,395.00 is BELOW the LOWER LIMIT of the interval; this y-value is UNUSUALLY LOW. [ANSWER]

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