Problems

  1. How does gender influence total costs?
    1. Conduct a test of hypothesis to determine if there is a difference on average for total costs between males and females?
    2. Create a multiple regression that predicts total costs from gender and length of stay. When a nominal variable with two levels is included in a multiple regression two parallel lines are estimated, one for each level. The regression coefficient for the nominal variable represents ½ of the distance between the two lines or one half of the effect of gender on total costs.
    3. Compare the difference in the gender mean total costs found in part a with the gender effect (twice the gender regression coefficient) in part b. Why do they differ?
  2. The Alice Hyde ...

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