City Hospital would like to develop a regression model to predict the total hospital bill for a patient based on his or her length of stay, the number of days in the hospital’s intensive care unit (ICU), and the age of the patient. Data for these variables can be found in the Excel file City Hospital.xlsx.
a. Construct a regression model using all three independent variables.
b. Interpret the meaning of the regression coefficients.
c. Predict the average hospital bill for a 53 year old person hospitalized for three days with no days spent in the ICU.
d. Construct a 95% confidence interval for the average hospital bill for the patient in part c. Interpret the meaning of the interval.
e. Construct a 95% prediction interval for the hospital bill for the patient in part c. Interpret the meaning of the interval.