Question
Please show work
Do different types of hospitals have different practices when submitting insurance claims? Suppose an insurance examiner and his team compare the results of 27801 randomly selected health insurance claims to actual patient records. Insurance claims in the study came from three types of hospitals: public, private, and university hospitals. Of the 27801 claims evaluated, 15183 were confirmed to be accurate, 5357 contained errors but did not require recoding of the healtheare services provided, and 7261 were incorrect and required recoding of services billed Data on the status of insurance claims are shown as a 3 × 3 contingency table. Confirmed Inaccurate, Incorrect needed 4676 152 529 5357 accurate no change recoding All needed Public 6452 24516 207 790 602 2495 7261 27801 13388 Private 43 University 1364 Al 15183 The examiner uses a chi-square test of independence at a significance level of -0.10 to evaluate his null and alternative hypotheses. Ho There is no association between hospital type and insurance claim status.
Explanation / Answer
The value of the test statistics is 9.48773
Here the degrees of freedom = (3-1)*(3-1) = 4
We use excel to find the p-value
=chidist(9.48773,4)
= 0.05
p-value = 0.05
Here the p-value is less than the level of significance (0.10); we reject the null hypothesis.
Yes. Since the p-value of the test is less than the stated alpha level of 0.10, there is sufficient evidence to reject the null hypothesis that hospital type and insurance claim status are unassociated.