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Hypothesis Testing in Healthcare Management Case Study
Answered

For the Case study below,

Carry out the required tests in the three questions in Excel. Make sur to format work so it fits to page and can be printed if Marina Petrenko’s manager wants to print it

  1. write out a report in Word document on behalf of Marina Petrenko. Make sure to label each problem clearly.
  2. submit both the Excel file and the word document as a group.

Marina Petrenko, a Humber College Healthcare Management program graduate who always had only perfect marks in statistics, was hired by the famous Healthy Life medical insurance company. Marina is assigned to conduct statistical analysis of medical and financial data. As Marina is on probation, please help her to complete the following three Hypothesis Tests. State hypotheses H0 and H1 and provide detailed conclusions (based on P-values or critical values/test statistics) together with the Excel output. For your convenience the data are given in the Assignment 2 Data file.

  1. Analyzing the most recent data, Marina’s manager Dr. Stein found out that in 2018 the anti-cancer prescription drug claims submitted by Healthy Life clients contained amounts considerably greater than he anticipated. Specifically, he asked Marina to check whether patients with Oncotype DX scores over 30 claimed, on average, more or less than $1000 in 2018. Using the systematic sampling method Marina selected 60 patients from this category (see the Assignment 2 Data file). Please help Marina to test the claim that the population mean annual amount of the anti-cancer prescription drug claims was $1000 in 2018. Use a 0.05 level of significance. Also construct a 95% confidence interval for the mean claims amount.

  2. Smoking is a risk factor affecting patient’s cardiovascular system (and not only cardiovascular system, of course). Marina was asked to take random samples of male Healthy Life members recently admitted to hospitals in GTA with heart attacks. She compiled two large separate files consisting of those male residents of Toronto who smoked and those who never smoked. The purpose of this research is to prove that the first heart attack occurs at an earlier age if a patient smoked. After carefully analyzing the data Marina came up with the hypothesis that male smokers who suffer a first heart attack are, on average, 4.5 years younger than non-smoking males who suffer a first heart attack. Use a 0.05 level of significance. Assume variances of the two groups are equal. Round values to 4 decimal places.

  3. Marina’s manager Dr. Jonathan Stein wonders whether Healthy Life members needed more chiropractic help in 2018 than in 2017, on average. Marina found a random sample of those who were treated by chiropractic doctors in both years. Data provided. Please help Marina to check whether annual number of visits increased, on average. Use a 0.01 level of significance. Marina and her manager know that in both cases differences are normally distributed, so we can assume a normal distribution.

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