The steps you take in Phase Two will also help with identifying future trends, confirming which option to choose, and determining which attributes the hospital chain should be aware of.
It is important to provide your stakeholders with the background of how and why you chose specific ways to identify trends and make predictions. As a consultant, you must be able to articulate this kind of information to people who may not have the background in statistics that you do; after all, you were hired for your expertise. Specifically, you need the ability to explain which regressions were used and why.
Your detailed goals for this phase of your work are as follows:
Use current data and analyses to identify future trends and attributes that can have an impact on expenses and admissions using regressions.
Use the Hospital Data Set to complete this step.
Perform two linear bivariate regressions and two multiple regressions to provide specific recommendations.
Choose three key hospital attributes out of the following five for regressions: number of beds, admissions, personnel, payroll expense, and outpatient visits.
Use the hypothesis from Milestone One to validate and predict using regressions, keeping in mind the expenses range of $55–$75 million.
Dependent and independent variables for your analyses should come from the provided data only.
Your task is to identify future trends and attributes that impact expenses and admissions. As per the descriptions below, you will add new sheets to the Data Analysis Workbook you created in Milestone One. You will then use this information to create a written predictions and trends report. You will submit both the workbook and the written report in this milestone.
Data Analysis Workbook
Add new sheets to your Data Analysis Workbook per the descriptions below.
Perform two bivariate regressions to provide recommendations.
For the first bivariate regression, the dependent variable should be Total Expense. Choose an independent variable from one of the remaining attributes.
Create a sheet titled P2_1st_Bivariate_Regression in your Data Analysis Workbook.
For the second bivariate regression, the dependent variable should be Admissions. Choose an independent variable from one of the remaining variables.
Create a sheet titled P2_2nd_Bivariate_Regression in your Data Analysis Workbook.
What would be the right attribute size (independent variable) seems most appropriate to lead you in the expense range of $55–$75 million?
Perform two multivariate regressions to provide recommendations.
For the first multivariate regression, the dependent variable should be Total Expense (the column in the data set). Choose two independent variables from one of the remaining attributes.
Within your Data Analysis Workbook, create a sheet titled P2_1st_Multi_Regression.
Which combination of the attributes seems most appropriate to lead you in the expense range of $55–$75 million?
For the second multivariate regression, the dependent variable should be Admissions (the column name in the data set). You should choose two independent variables from one of the remaining attributes.
Within your Data Analysis Workbook, create a sheet titled P2_2nd_Multi_Regression.
Which combination of the attributes would seem appropriate that would lead you in the expense range of $55–$75 million?
Validate or reject your initial hypothesis based on your analysis of the regressions.
You will also need to qualify in the predictions and trends report what the rationale is behind using that attribute towards regression. Identify the right attribute size (independent variable) that would lead you in the expense range of $55–$75 million?
Predictions and Trends Report
Section One: Overview
What does your analysis tell you about your initial hypothesis—the option chosen in Phase One? Did you confirm it? Support your reasoning with your analysis results.
Section Two: Findings from Regression Analysis
Briefly describe the key elements for each regression presented in Excel. Cite the regression coefficient, regression line equation, p–value, and significance F in your description.
Which of the independent variables are impactful, and why?
Overall, what is your conclusion about the option to be recommended and the key attributes that the hospital chain should be alert to?
Guidelines for Submission
1. Data Analysis Workbook: Submit the same Data Analysis Workbook Excel document that was submitted in Milestone One, with new sheets added as directed above.
2. Predictions and Trends Report: Submit a Word document using double spacing, 12-point Times New Roman font, and one-inch margins. This assignment should be two pages in length. Any sources should be cited in APA format. Consult the Shapiro Library APA Style Guide for more information on citations.