Healthcare Analytics
Please answer the following questions:
1. Politicians often make statements like the following: “We are going to provide the best-possible health care at the lowest-possible cost.” This sounds like a great optimization problem, but this goal is nonsense when stated this way. Why?
2. Suppose that you have a sack that contains 19 black marbles and 1 white marble of identical size. You reach into the bag, close your hand around a marble, and withdraw it from the bag. It is correct to say that you are 95% confident that the marble in your hand is black. Read the following statements and choose the one that is equivalent to your “95% confidence” statement:
a) This particular marble is 95% black and 5% white. (Maybe it has white spots!)
b) This particular marble is black 95% of the time and white 5% of the time. (perhaps it flickers!)
c) This particular marble doesn’t have a single color, only a probability. Its probability of being black is 95%.
d) The process by which I got this particular marble can be repeated. If it were repeated many, many times, the resulting marble would be black in about 95% of those trials.
3. Enter the following 3 data sets into Excel and find their respective regression line formulas and R2 values:
