In the following output, the variable “Service” is coded 0 for general medical hospitals and 1 for psychiatric hospitals. Shown below is Minitab output from a logistic regression attempt to predict capitalize Service by payroll expenditures. Study the output. What is the model? How good is the overall fit of the model? Comment on the strength of the predictor. Thinking about hospitals, does the model make sense to you? Use the model to estimate the probability that a hospital is a psychiatric hospital if the payroll expenditures are $80,000.

Transcribed Image Text:

Variable Service Coefficients Term Coef Constant -0.932546 Payroll Exp. Value 1 0 Total Count - 32 (Event) 168 200 SE Coef Z-Value P-Value 0.289749 -3.22 0.001 -0.000323 0.0000123 2.64 0.008 Regression Equation P(1) = exp (Y)/(1+ exp (Y')) Y' = -0.932546 0.0000323 Payroll Exp.