# Question: Cost to charge ratios the percentage of the amount billed that represents

Cost-to-charge ratios (the percentage of the amount billed that represents the actual cost) for 11 Oregon hospitals of similar size were reported separately for inpatient and outpatient services. The data are shown in the table at the top of the next column.

a. Does there appear to be a strong linear relationship between the cost-to-charge ratio for inpatient and outpatient services? Justify your answer based on the value of the correlation coefficientand examination of a scatterplot of the data.

b. Are any unusual features of the data evident in the scatterplot?

c. Suppose that the observation for Harney District was removed from the data set. Would the correlation coefficient for the new data set be greater than or less than the one computed in Part (a)? Explain.

a. Does there appear to be a strong linear relationship between the cost-to-charge ratio for inpatient and outpatient services? Justify your answer based on the value of the correlation coefficientand examination of a scatterplot of the data.

b. Are any unusual features of the data evident in the scatterplot?

c. Suppose that the observation for Harney District was removed from the data set. Would the correlation coefficient for the new data set be greater than or less than the one computed in Part (a)? Explain.

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