Question: Below are three regression model that help predict the gross drug cost. Based on the R square, coefficients, t stat, and P-value, what model is

Below are three regression model that help predict the gross drug cost. Based on the R square, coefficients, t stat, and P-value, what model is the best in predicting the gross drug cost? Why? (For purposes of this assignment, the best models are those that have the smallest prediction errors for future realized drug costs.)

Square 0.09996102 Standard Error Observations ANOVA 1366.61069 30160 df SS MS Regression

SUMMARY OUTPUT Regression Statistics Multiple R R Square 0.31644918 0.10014008 Adjusted R Square 0.09996102 Standard Error Observations ANOVA 1366.61069 30160 df SS MS Regression 6 6.3E+09 F 1E+09 559.258 ignificance F 0 Residual Total 30153 5.6E+10 1867625 Intercept RiskScore Gender NLISDummy LISCHOSERDummy SpecialtyDummy 30159 6.3E+10 Coefficients andard Err t Stat -1339.68233 246.221 -5.44097 0.95858323 0.02431 39.4302 -51.9174992 16.4498 -3.15612 -17.0248437 22.2009 -0.76685 93.5768917 24.5595 3.81021 440.395769 16.3267 26.9739 54.6139475 11.3262 4.82192 P-value Lower 95% Upper 95% Lower 95.0% 5.3E-08 -1822.286 -857.0785 -1822.28615 Upper 95.0% -857.0785181 AdjudicationDays 32.414157 76.813738 0 0.9109329 1.0062336 0.9109329 0.0016 -84.15979 -19.67521 -84.1597901 0.44317 -60.5396 26.489913 -60.5396007 0.00014 45.439167 141.71462 45.439167 2E-158 408.39467 472.39686 408.394675 1.4E-06 1.006233564 -19.67520824 26.48991324 141.7146165 472.3968636 76.81373794 Data 5 Data 6 Regression Model 4 Regression Model 5 Regression Model 6 (+) 32.4141571

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

To determine the best model for predicting gross drug cost we should consider several criteria including Rsquared coefficient values tstatistics and p... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

A magnifying lens with a 3-cm focal length is used to observe a tiny ant from 2cm away. Show all work on your scratch paper. a.) Draw the lens and optical feature with a scale of 1cm = 1cm of your...

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...

Cassie works at the grocery store and earns $12 an hour. She is busy with extracurricular activities and works 20 hours during the week. However, she picks up an eight-hour Sunday shift four times a...

I need help with this question. I'm lost. M2_A2. Western Home Inspections is a home inspection service that provides prospective homebuyers with a thorough assessment of the major systems in a house...

M2_A2. Western Home Inspections is a home inspection service that provides prospective homebuyers with a thorough assessment of the major systems in a house prior to the execution ofthe purchase...

M2_A2. Western Home Inspections is a home inspection service that provides prospective homebuvers with a thorough assessment of the major systems in a house prior to the execution of the purchase...

M2_A2. Western Home Inspections is a home inspection service that provides prospective homebuyers with a thorough assessment of the major systems in a house prior to the execution of the purchase...

A home appraisal company would like to develop a regression model that would predict the selling price of a house based on the age of the house in years (Age), the living area of the house in square...

FBC corporation has purchased a machine 7 years ago for $630000 has been depreciated to a book value of $ 450000. It originally had a projected life of 10 years and salvage value of Tk. 30000. A new...

We normally think of the one-dimensional harmonic oscillator as lying horizontally. Suppose that it is held vertically so that it experiences a perturbation mgx. Calculate the first-order correction...

How often do you think you should review the success of the risk control measures in the RMP. Explain

Why does Amazon use bar raisers in the hiring process Read the case study Amazon recruits face Bar Raisers and answer the above question

Welland Fabricating borrowed $73,400 at 8% compounded quarterly to purchase a new piece of machinery. Payments of $5000 are made at the end of every 3 months How much is the final loan payment? (Do...

Use Cramer's Rule to solve (if possible) the system of linear equations. (If not possible, enter IMPOSSIBLE.) X2 + X3 = -11 2x1 + 2x2 + 3x3 = 5x1 - 2x2 + 6x3 = 4x1 - 2. -5 (X1, X2, x3) = (

Complete the Adjusted Trial Balance as of December 31, 2016 using the given information. Enter accounts in order of assets, liabilities, common stock, dividends, revenues, and expenses. Assume all...

In 2020, Iris and her employer each contributed $4,000 to her DBPP which will pay her a pension of 1.5% for every year of service based on the three years of income. Her salary for 2020 was $72,000...

respond to peer db 1. How can budgeting help with the planning of staff resources? Budgeting provides a structured approach to forecasting and managing human resources by aligning staffing needs with...

Briefly explain the marginal analysis approach to the single period inventory problem.

Using the data from Problem 9-20 plus the unit production costs shown in the following table, which locations yield the lowest cost? Location Production Costs Decatur ........... $ 50 Minneapolis...

Compute the expected number of cars arriving in Problem 13-15 using the expected value formula. Compare this with the results obtained in the simulation. In Problem 13-15 The number of cars arriving...

What is the most common problem to avoid during interviewing?

Do you agree with the performance formula? Will you use it on the job?

Reinforcement theory is unethical because it is used to manipulate employees. Do you agree with this statement? Explain your answer.