(1) Analyze the studentized deleted residuals in the page margin for Options 1 and 2 (see SDR1 and SDR2).
(2) Is hospital 14 an outlier with respect to its y value when using Option 2?
(3) Consider a questionable large hospital (DL = 1) for which Xray 56,194, BedDays 14,077.88, and Length 6.89. Also, consider the labor needs in an efficiently run large hospital described by this combination of values of the independent variables. The 95 percent prediction intervals for these labor needs given by the models of Options 1 and 2 are, respectively, [14,906.24, 16,886.26] and [15,175.04, 17,030.01]. By comparing these prediction intervals, by analyzing the residual plots for Options 1 and 2 given in Figure 14.33(d) and (e) on page 577, and by using your conclusions regarding the studentized deleted residuals, recommend which option should be used.
(4) What would you conclude if the questionable large hospital used 17,207.31 monthly labor hours?

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