Question

The regression equation for hospital length of stay (LOS) and the cost of the hospital stay is: Cost=550*LOS+780. The R2 is 0.522. Which of the following is correct? The relationship between cost and LOS is inverse. The effect of LOS on cost is very small. 0.522 describes how well the regression model represents the data. This is an example of multiple regression analysis.

Answer 1

We know that the regression equation is:

Cost = 550*LOS+780

and R² = 0.522

Since there is only independent variable it can't be an example of multiple regression analysis and also an incremental change of 550 with an addition of 1 LOS can't be said to be a small effect. As the sign of the coefficient of LOS is +ve, the relationship between Cost and LOS is not inverse.

Thus, the correct option is "0.522 describes how well the regression model represents the data".

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