Cost Women Men $6,457.31 $1,752.96 $3,625.43 $29,821.74 $2,510.78 $1,907.73 $8,2
ID: 3202253 • Letter: C
Question
Cost
Women
Men
$6,457.31
$1,752.96
$3,625.43
$29,821.74
$2,510.78
$1,907.73
$8,228.22
$5,097.72
$3,331.56
$7,574.53
$7,254.36
$1,295.30
$29,766.29
$15,259.68
$5,881.90
$4,169.06
$4,901.39
$11,045.79
$1,853.67
$4,745.26
$2,015.86
$4,283.55
$7,900.35
$1,797.81
$2,272.61
$6,774.32
$12,262.95
$24,985.78
$6,778.67
$4,286.90
$33,081.06
$5,458.13
$8,650.08
$9,792.65
$1,548.56
$3,782.60
$8,215.43
$5,249.46
$15,021.25
$3,020.36
$5,029.43
$2,524.01
$2,223.05
$17,605.59
$1,723.00
$5,810.96
$6,892.79
$3,054.19
$6,646.63
$5,672.18
$3,769.42
$5,051.76
$4,824.50
$5,470.64
$7,409.93
$1,438.85
$4,287.45
$7,099.69
$5,411.53
$4,758.89
$2,694.11
$3,720.09
$4,703.77
$4,278.73
$1,248.09
$4,561.72
$4,596.00
$2,088.95
Use the data on the Cost worksheet (above) that shows the hospital cost for a randomly selected sample of 34 women and 34 men
Rearrange the data so that they can be analyzed using regression, and add an independent variable that is 1 for women and 0 for men.
Test the hypothesis that the cost for women is equal to the cost for men (against the alternative that they are not equal) using regression.
Cost
Women
Men
$6,457.31
$1,752.96
$3,625.43
$29,821.74
$2,510.78
$1,907.73
$8,228.22
$5,097.72
$3,331.56
$7,574.53
$7,254.36
$1,295.30
$29,766.29
$15,259.68
$5,881.90
$4,169.06
$4,901.39
$11,045.79
$1,853.67
$4,745.26
$2,015.86
$4,283.55
$7,900.35
$1,797.81
$2,272.61
$6,774.32
$12,262.95
$24,985.78
$6,778.67
$4,286.90
$33,081.06
$5,458.13
$8,650.08
$9,792.65
$1,548.56
$3,782.60
$8,215.43
$5,249.46
$15,021.25
$3,020.36
$5,029.43
$2,524.01
$2,223.05
$17,605.59
$1,723.00
$5,810.96
$6,892.79
$3,054.19
$6,646.63
$5,672.18
$3,769.42
$5,051.76
$4,824.50
$5,470.64
$7,409.93
$1,438.85
$4,287.45
$7,099.69
$5,411.53
$4,758.89
$2,694.11
$3,720.09
$4,703.77
$4,278.73
$1,248.09
$4,561.72
$4,596.00
$2,088.95
Explanation / Answer
After rearrangement of data
S.NO
Women = 1,
Men =0
Cost
1
1
6457.31
2
1
3625.43
3
1
2510.78
4
1
8228.22
5
1
3331.56
6
1
7254.36
7
1
29766.29
8
1
5881.90
9
1
4901.39
10
1
1853.67
11
1
2015.86
12
1
7900.35
13
1
2272.61
14
1
12262.95
15
1
6778.67
16
1
33081.06
17
1
8650.08
18
1
1548.56
19
1
8215.43
20
1
15021.25
21
1
5029.43
22
1
2223.05
23
1
1723.00
24
1
6892.79
25
1
6646.63
26
1
3769.42
27
1
4824.50
28
1
7409.93
29
1
4287.45
30
1
5411.53
31
1
2694.11
32
1
4703.77
33
1
1248.09
34
1
4596.00
35
0
1752.96
36
0
29821.74
37
0
1907.73
38
0
5097.72
39
0
7574.53
40
0
1295.30
41
0
15259.68
42
0
4169.06
43
0
11045.79
44
0
4745.26
45
0
4283.55
46
0
1797.81
47
0
6774.32
48
0
24985.78
49
0
4286.90
50
0
5458.13
51
0
9792.65
52
0
3782.60
53
0
5249.46
54
0
3020.36
55
0
2524.01
56
0
17605.59
57
0
5810.96
58
0
3054.19
59
0
5672.18
60
0
5051.76
61
0
5470.64
62
0
1438.85
63
0
7099.69
64
0
4758.89
65
0
3720.09
66
0
4278.73
67
0
4561.72
68
0
2088.95
Here independent variable 1 was coded for Women and 0 for Men
Using regression in statistical software STATA suggest that cost for women and men are not statistically significantly different. i.e failed to reject null hypothesis (P value = 0.88). Output for the regression analysis is shown below
Group | Obs Mean Std. Err. Std. Dev. [95% Conf. Interval]
---------+--------------------------------------------------------------------
0 | 34 6624.635 1096.923 6396.108 4392.927 8856.342
1 | 34 6853.454 1191.693 6948.705 4428.936 9277.971
Group 0 (men) Mean cost = 6624.635 and for group 1 (women) = 6853.454
using command regress in Stata
regress cost women1men0
Source | SS df MS Number of obs = 68
-------------+------------------------------ F( 1, 66) = 0.02
Model | 890088.893 1 890088.893 Prob > F = 0.8881
Residual | 2.9434e+09 66 44597346.3 R-squared = 0.0003
-------------+------------------------------ Adj R-squared = -0.0148
Total | 2.9443e+09 67 43944999.2 Root MSE = 6678.1
------------------------------------------------------------------------------
cost | Coef. Std. Err. t P>|t| [95% Conf. Interval]
-------------+----------------------------------------------------------------
women1men0 | 228.8191 1619.683 0.14 0.888 -3004.983 3462.621
_cons | 6624.635 1145.289 5.78 0.000 4337.992 8911.278
------------------------------------------------------------------------------
P value = 0.88
Therefore, cost for women and men are not statistically significantly different i.e failed to reject null hypothesis
S.NO
Women = 1,
Men =0
Cost
1
1
6457.31
2
1
3625.43
3
1
2510.78
4
1
8228.22
5
1
3331.56
6
1
7254.36
7
1
29766.29
8
1
5881.90
9
1
4901.39
10
1
1853.67
11
1
2015.86
12
1
7900.35
13
1
2272.61
14
1
12262.95
15
1
6778.67
16
1
33081.06
17
1
8650.08
18
1
1548.56
19
1
8215.43
20
1
15021.25
21
1
5029.43
22
1
2223.05
23
1
1723.00
24
1
6892.79
25
1
6646.63
26
1
3769.42
27
1
4824.50
28
1
7409.93
29
1
4287.45
30
1
5411.53
31
1
2694.11
32
1
4703.77
33
1
1248.09
34
1
4596.00
35
0
1752.96
36
0
29821.74
37
0
1907.73
38
0
5097.72
39
0
7574.53
40
0
1295.30
41
0
15259.68
42
0
4169.06
43
0
11045.79
44
0
4745.26
45
0
4283.55
46
0
1797.81
47
0
6774.32
48
0
24985.78
49
0
4286.90
50
0
5458.13
51
0
9792.65
52
0
3782.60
53
0
5249.46
54
0
3020.36
55
0
2524.01
56
0
17605.59
57
0
5810.96
58
0
3054.19
59
0
5672.18
60
0
5051.76
61
0
5470.64
62
0
1438.85
63
0
7099.69
64
0
4758.89
65
0
3720.09
66
0
4278.73
67
0
4561.72
68
0
2088.95