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A Certain HMO Is Attempting to Show the Benefits of Managed

Question 86

Multiple Choice

A certain HMO is attempting to show the benefits of managed health care to an insurance company. The HMO believes that certain types of doctors are more cost-effective than others. One theory is that both primary specialty and whether the physician is a foreign or USA medical school graduate are an important factors in measuring the cost-effectiveness of physicians. To investigate this, the president obtained independent random samples of 40HMO40 \mathrm { HMO } physicians, half foreign graduates and half USA graduates, from each of four primary specialties-General Practice (GP) , Internal Medicine (IM) , Pediatrics (PED) , and Family Physician (FP) - and recorded the total per-member, per-month charges for each. Thus, information on charges were obtained for a total of n=160n = 160 doctors. The ANOVA results are summarized in the following table.
 Source  df  SS  MS  F Value  Prob > F  Specialty 322855761860.94.0001 Medschool 11051050.84.6744 Interaction 38902972.38.1348 Error 15218950125 Total 15942800\begin{array} { l r r r r r } \text { Source } & \text { df } & \text { SS } & \text { MS } & \text { F Value } & \text { Prob > F } \\\hline \text { Specialty } & 3 & 22855 & 7618 & 60.94 & .0001 \\\text { Medschool } & 1 & 105 & 105 & 0.84 & .6744 \\\text { Interaction } & 3 & 890 & 297 & 2.38 & .1348 \\\text { Error } & 152 & 18950 & 125 & & \\\hline \text { Total } & 159 & 42800 & & & \\\hline\end{array}

Interpret the test for interaction shown in the ANOVA table. Use α=0.025\alpha = 0.025 .


A) There is sufficient evidence at the α=0.025\alpha = 0.025 level to say that primary specialty and medical school do not interact.
B) There is insufficient evidence at the α=0.025\alpha = 0.025 level to say that primary specialty and medical school interact.
C) There is sufficient evidence at the α=0.025\alpha = 0.025 level to say that primary specialty and medical school interact.
D) It is impossible to make conclusions about primary specialty and medical school interaction based on the given information.

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