Question: Below is a partial data for selected health care systems (n=18) showing each health care system's operating margin (computed as total revenue minus total expenses
Below is a partial data for selected health care systems (n=18) showing each health care system's operating margin (computed as total revenue minus total expenses divided by total revenue plus net operating profits) and percent of equity financing (fund balance divided by total assets). Use the scatter plot below to answer the following questions:

Financial Ratios for Selected Health Care Systems (n = 18) Name of Health Care System % Operating Margin % Equity Financing Albert Einstein Healthcare Network 3.89 35.58 Alliant Health Systems 8.23 59.68 Baptist Memorial Health Care System 2.56 40.48 Camcare Health System 4.45 45.63 Carondelet Health System 3.54 42.30 Dimensions Healthcare System 1.77 26.65 Greenville Hospital System 4.98 37.74 Percent Equity Financing vs. Percent Operating Margin 14.00 12.00 y = 0.2736x - 7.9356 10.00 R' = 0.6759 8.00 6.00 Percent Operating Margin 4.00 2.00 0.00 -2.009.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 -4.00 -6.00 Percent Equity Financing
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
