Suppose because of facility limitations, a large privately owned nursing home ha
ID: 3057410 • Letter: S
Question
Suppose because of facility limitations, a large privately owned nursing home has been turning away large numbers of patients requesting admission. Because the nursing home receives some financial assistance from public sources, they are prohibited from making the decision concerning admission on the basis of whether payment is from Medicaid or private funds. As part of a compliance study, suppose that researchers collect the following data over a two year period. Of the 88 Medicaid patients applying for admission, 24 are admitted while 64 are not. Of the 110 privately funded patients applying for admission, 62 are admitted while 48 are not. Are admission status and funding independent?
Admitted (A) Not Admitted Medicaid (M) 24 64 Privately Funded 62 48 Yes, because P(M | A) = P(M No, because P(M | A) = P(M) Yes, because P(M | A) is not equal to P(M) No, because P(M | A) is not equal to P(M
Explanation / Answer
P(M | A) = 24/(24 + 62) = 12/43 = 0.2791
P(M) = 88/( 88+110 ) = 4/9 = 0.4444
Answer: As P(M | A) is not equal to P(M), M and A are not independent.
No, because P(M | A) is not equal to P(M)