Reference no: EM132584413

Quantitative Analysis For Management Decisions

Question 1. The following data are claims(in $millions) for Blue cross Blue shield benefits benefits for nine states, along with the surplus(in $millions) that the company had in assets in those states.

State                  Claims          Surplus

Alabama              1425             277

Colorado              273              100

Florida                   915             120

Illinois                  1687            259

Maine                     234              40

Montana                 142              25

North Dakota          259             57

Oklahoma               258               31

Texas                       894             141

Use the data to compute a correlation coefficient, to determine the correlation between claims and surplus. Interpret the results accordingly explain all variables under study along with their significance. Further explain entire concept of Correlation using 5 real life situations which explains the concept of correlation in detail. Make use of appropriate reference and enrich your literature review appropriately.

Question 2. A specialist in hospital administration stated that no. of employees in a hospital can be estimated by counting the no. of beds in the hospital .A health care researcher decided to develop a regression model in an attempt to predict the number of employees of a hospital by the no. of beds . 12 hospitals were surveyed and obtained following data.

No of Beds.                      Employees

23                                     69

29                                     95

29                                    102

35                                    118

42                                    126

46                                    125

50                                    138

54                                    178

64                                    156

66                                   184

76                                   176

78                                   225

After obtaining the regression model. Interpret it accordingly based on your understanding .Explain the concept in detail taking into consideration present pandemic scenario. Support your answer with good literature review.

Question 3. A survey of CPAs across the United States found that he average net income for sole proprietor CPAs is $74914. An accounting researcher wants to test this amount figure by taking a random sample of 112 with an average income of $78695 sole proprietor accountants in the United states to determine whether the net income figure changed. Assume the population standard deviation of net incomes of sole proprietor CPAs is $14,530. Establish appropriate hypothesis and using appropriate test determine the relevance of the hypothesis followed by appropriate business decision.

Attachment:- Management Decisions.rar