Linear Regression Model
Exercise 4 offers two versions: EXCEL (base) and RStudio (BONUS)
Track 1 RStudio: If you have chosen to work with RStudio (1 % BONUS), please run the following models and complete the following tables. See Track 2 below for EXCEL
1st Model:
Run a linear model and predict the difference between hospital beds (use the bed-tot) and hospital’s ownership on hospital net-benefit? Discuss your finding, do you think having higher beds has positive impact on the hospital net benefit? What about the ownership?
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Model 1a |
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Hospital Characteristics |
Coef. |
St. Err |
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Hospital beds |
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Ownership |
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For-Profit |
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Non-for profit |
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Other |
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N |
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R-Squared |
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2nd Model:
Now, estimate the impact of being a member of a system on hospital net benefit. And discuss your finding (nor more than 2 lines). Is the result significant? Explain.
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Model 2 |
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Hospital Characteristics |
Coef. |
St. Err |
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Hospital beds |
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Ownership |
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For-Profit |
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Non-for profit |
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Other |
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Membership |
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System Membership |
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N |
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R-Squared |
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3rd Model:
Now, include the ratio of ratio-Medicare-discharge and ratio-Medicaid-discharge in your model. How do you evaluate the impact of having higher Medicare and Medicaid patients on hospital revenues?
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Model 3 |
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Hospital Characteristics |
Coef. |
St. Err |
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Hospital beds |
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Ownership |
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For-Profit |
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Non-for profit |
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Other |
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Membership |
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System Membership |
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Socio-Economic Characteristics |
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Medicare discharge ratio |
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Medicaid discharge ratio |
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N |
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R-Squared |
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Based on your finding please recommend 3 policies to improve hospital performance. Please make sure to use the final model for your recommendation.
Discuss your findings. Make sure to attach the plotted information
Track 2 EXCEL: If you have chosen to work with Excel, please run above three models and complete the following tables.
Model 1:
Run a linear model and predict the difference between hospital beds (use the bed-tot) and hospital net-benefit in teaching hospitals.
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Hospital Characteristics |
Coef. |
ST. ERR |
T Stat |
P-values |
Lower 95% |
Upper 95% |
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Model-1 |
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Hospital beds |
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Teaching Hospitals |
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R Square |
Model 2:
Run a linear model and predict the difference between hospital beds (use the bed-tot) and hospital net-benefit in non-teaching hospitals.
Use the results from model 1 and model 2 and compare the results between teaching and non-teaching hospitals.
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Hospital Characteristics |
Coef. |
ST. ERR |
T Stat |
P-values |
Lower 95% |
Upper 95% |
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Model-2 |
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Hospital beds |
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Teaching Hospitals |
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R Square |
Model 3:
Now, include the ratio of ratio-Medicare-discharge and ratio-Medicaid-discharge in the first model. How do you evaluate the impact of having higher Medicare and Medicaid patients on hospital net-benefit in teaching hospitals?
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Hospital Characteristics |
Coef. |
ST. ERR |
T Stat |
P-values |
Lower 95% |
Upper 95% |
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Model-3 |
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Hospital beds |
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Teaching Hospitals |
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ratio-Medicare-discharge |
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ratio-Medicaid-discharge |
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R Square |
Model 4:
Now, include the ratio of ratio-Medicare-discharge and ratio-Medicaid-discharge in the first model. How do you evaluate the impact of having higher Medicare and Medicaid patients on hospital net-benefit in non-teaching hospitals?
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Hospital Characteristics |
Coef. |
ST. ERR |
T Stat |
P-values |
Lower 95% |
Upper 95% |
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Model-4 |
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Hospital beds |
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Teaching Hospitals |
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ratio-Medicare-discharge |
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ratio-Medicaid-discharge |
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R Square |
Based on your finding please recommend 3 policies to improve hospital performance. Please make sure to use the final model for your recommendation.
