Question: Your research group is interested in understanding factors that affect quality of medical care and other features that directly influence a patient’s experience in your local hospital. One relationship you are particularly interested in researching is the relationship between the type of insurance provider and the length of stay among patients who are admitted to the hospital. To explore this association, you collect data from hospital records from the past 5 years. For each of the patients who were admitted, you use the records to note the patient’s insurance provider (Private, Medicare, or Medicaid) and calculate their length of stay as the number of days between the day they were admitted and the day they were discharged. Assume .

Use the Stata output provided below to answer the following questions, as applicable.

1. How much of the variation in length of hospital stay is explained by type of insurance provider?
2. Transform the Stata output into a fitted regression equation. Be sure to define how the variables are defined and coded.
3. What type of insurance provider is the reference category in this output?
4. Given the context of the study, is the intercept a meaningful value? If so, provide an interpretation of the intercept. If not, explain why it is not meaningful.
5. Provide an interpretation of both of the slope coefficients.
6. Test the significance of the slope for Medicaid patients .

1. State the hypotheses. Make sure you define any variables that you use. It is not sufficient to just use Greek letters without defining them!

1. Convert to the appropriate test statistic and calculate degrees of freedom.
2. Compare the test statistic from ii) to the critical value of the appropriate known distribution and calculate the corresponding p-value range (based on the Sullivan table). Based on this, will you reject or fail to reject the null hypothesis?
3. Interpret within the context of the study using a 5% significance level.

1. What is the estimated difference in length of hospital stay between Medicaid patients and Medicare patients? Show your work.

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