The U.S. government authorizes private contractors to audit bills paid by Medicare and Medicaid. The contractor audits
Question:
The U.S. government authorizes private contractors to audit bills paid by Medicare and Medicaid. The contractor audits a random sample of paid claims and judges each claim to be either fully justified or an overpayment. Here is a 2 × 2 table that summarizes data from one such audit. (One of the authors served as a statistical consultant in connection with this audit. For reasons of confidentiality we cannot identify the health care provider.) For this audit, all claims were divided into two sub-populations according to amount of the claim, small or medium. Two simple random samples were chosen, 30 small claims and 30 medium claims. We want to answer the question, “Does the chance that a claim is judged to be an overpayment depend on the size of the claim?”
a. What is the response variable? What is the explanatory variable?
b. What are the observational units for this study?
c. As for any 2 × 2 table, there are two pairs of conditional proportions. For this table, the two pairs are 14/30 versus 8/30 and 16/38 versus 14/22. Which pair corresponds to the question of interest?
Step by Step Answer:
Introduction To Statistical Investigations
ISBN: 9781119683452
2nd Edition
Authors: Beth L.Chance, George W.Cobb, Allan J.Rossman Nathan Tintle, Todd Swanson Soma Roy