The total expenses of a hospital are related to many factors. Two of these factors are the number of beds in the hospital and the number of admissions. Data were collected on 14 hospitals, as shown in the table below:
(1) State the linear equation
2) explain teh overall statistical significance of the model
3) explain the statistical significance of each independent variable in the model
4) interpret the adjusted R^2
5) is htis a good predictive equation? Which variables should be excluded if any and why?
| Hospital |
number of beds |
admissions (100s) |
Total expenses (millions) |
| 1 |
215 |
77 |
57 |
| 2 |
336 |
160 |
127 |
| 3 |
520 |
230 |
157 |
| 4 |
135 |
43 |
24 |
| 5 |
35 |
9 |
14 |
| 6 |
210 |
155 |
93 |
| 7 |
140 |
53 |
45 |
| 8 |
90 |
6 |
6 |
| 9 |
410 |
159 |
99 |
| 10 |
50 |
18 |
12 |
| 11 |
65 |
16 |
11 |
| 12 |
42 |
29 |
15 |
| 13 |
110 |
28 |
21 |
| 14 |
305 |
98 |
63
|