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 40 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 = 160 doctors. The ANOVA results are summarized in the following table.
Assuming no interaction, is there evidence of a difference between the mean charges of USA and foreign medical school graduates? Use .
A) No, because the test for the interaction is not significant at , the test for the main effect for medical school is not valid.
B) No, the test for the main effect for medical school is not significant at .
C) Yes, the test for the main effect for medical school is significant at .
D) It is impossible to make conclusions about the main effect of medical school based on the given information
Correct Answer:
Verified
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