Question

It has been argued that the malpractice insurance rates are related to the availability of health care. As a basic check on this, you collect data for ten states with the state default malpractice insurance rate for doctors (as a percentage of a doctor’s income) versus the number of doctors per 10,000 population.

Malpractice Insurance Rate                                        Doctors Per 10,000

2                                                                                  30

3                                                                                  20

1                                                                                  50

5                                                                                  20

6                                                                                    5

6                                                                                    8

4                                                                                  23

2                                                                                  25

9                                                                                    5

8                                                                                    7

a) State your null formally and in lay terms for a simple regression

b) Calculate r and the regression line (y = a + bx) and reject/accept at a=.05.

c) Explain your findings in lay terms using r-square, r, b (30)

d) Calculate a 95% confidence interval for the slope and explain in layterms.

e) Calculate a 95% confidence interval for Y when X is “5” and explain in  layterms.

Answer 1