TABLE 11-5
A physician and president of a Tampa Health Maintenance Organization (HMO) are attempting to show the benefits of managed health care to an insurance company. The physician believes that certain types of doctors are more cost-effective than others. One theory is that Primary Specialty is an important factor in measuring the cost-effectiveness of physicians. To investigate this, the president obtained independent random samples of 20 HMO physicians from each of 4 primary specialties - General Practice (GP), Internal Medicine (IM), Pediatrics (PED), and Family Physicians (FP) - and recorded the total charges per member per month for each. A second factor which the president believes influences total charges per member per month is whether the doctor is a foreign or USA medical school graduate. The president theorizes that foreign graduates will have higher mean charges than USA graduates. To investigate this, the president also collected data on 20 foreign medical school graduates in each of the 4 primary specialty types described above. So information on charges for 40 doctors (20 foreign and 20 USA medical school graduates) was obtained for each of the 4 specialties. The results for the ANOVA are summarized in the following table:

-Referring to Table 11-5, interpret the test for interaction.
A) There is insufficient evidence to say at the 0.10 level of significance that the difference between the mean charges for foreign and USA graduates depends on primary specialty.
B) There is sufficient evidence to say at the 0.10 level of significance that the difference between the mean charges for foreign and USA graduates depends on primary specialty.
C) There is sufficient evidence at the 0.10 level of significance of a difference between the mean charges for foreign and USA medical graduates.
D) There is sufficient evidence to say at the 0.10 level of significance that mean charges depend on both primary specialty and medical school.

Question

TABLE 11-5
A physician and president of a Tampa Health Maintenance Organization (HMO) are attempting to show the benefits of managed health care to an insurance company. The physician believes that certain types of doctors are more cost-effective than others. One theory is that Primary Specialty is an important factor in measuring the cost-effectiveness of physicians. To investigate this, the president obtained independent random samples of 20 HMO physicians from each of 4 primary specialties - General Practice (GP), Internal Medicine (IM), Pediatrics (PED), and Family Physicians (FP) - and recorded the total charges per member per month for each. A second factor which the president believes influences total charges per member per month is whether the doctor is a foreign or USA medical school graduate. The president theorizes that foreign graduates will have higher mean charges than USA graduates. To investigate this, the president also collected data on 20 foreign medical school graduates in each of the 4 primary specialty types described above. So information on charges for 40 doctors (20 foreign and 20 USA medical school graduates) was obtained for each of the 4 specialties. The results for the ANOVA are summarized in the following table:
 
-Referring to Table 11-5, interpret the test for interaction.
A) There is insufficient evidence to say at the 0.10 level of significance that the difference between the mean charges for foreign and USA graduates depends on primary specialty. 
B) There is sufficient evidence to say at the 0.10 level of significance that the difference between the mean charges for foreign and USA graduates depends on primary specialty. 
C) There is sufficient evidence at the 0.10 level of significance of a difference between the mean charges for foreign and USA medical graduates. 
D) There is sufficient evidence to say at the 0.10 level of significance that mean charges depend on both primary specialty and medical school.

Quizplus · Accepted Answer

The correct interpretation is that there is insufficient evidence at the 0.10 level of significance to conclude that the interaction between the type of graduate (foreign or USA) and primary specialty affects the mean charges.

TABLE 11-5 A Physician and President of a Tampa Health Maintenance Organization