Fluctuations in insurance coverage

Assignment Help Business Management
Reference no: EM131204024

a) You estimate that the price elasticity of demand for clinic visits is -0.25. You anticipate that a major insurer will increase the co-payment from $20 to $25. This insurer covers 40,000 of your patients, and those patients average 2.5 visits per year. What is your forecast of the change in the number of visits?

b) 9.7 Because of fluctuations in insurance coverage, the average price paid out of pocket (P) by patients of an urgent care center varied, as the table shows. The number of visits per month (Q) also varied, and an analyst believes the two are related. The analyst also thinks the data show a trend. Run a regression of Q on P and Period to test these hypotheses. Then use the estimated parameters a,b, and c and the values of Month and P to predict Q (number of visits.) The prediction equation is Q = a + (b * Month) + (c *P).

Month

1

2

3

4

5

6

7

8

9

10

11

12

P

$21

$18

$15

$24

$18

$21

$18

$15

$20

$19

$24

$20

Q

193

197

256

179

231

214

247

273

223

225

198

211

Reference no: EM131204024

Questions Cloud

Explore which is more risky bonds or common stocks : Explain the relationship between risk and return. Identify an example of risk and return. Explain which is more risky bonds or common stocks. Explain how understanding risk and return will help you in future business ventures.
Discuss the properties of the function derived : If a firm's production function is Y = KαL1-α, show that it can earn at most zero profit. Use this production function to express the output-labor ratio as a function of the capital-labor ratio. Discuss the properties of the function derived.
Construct the payoff table : a. Construct the payoff table. b. Does either firm have a dominant strategy? Dominated? Is there a stable equilibrium?
Describe the financial environment at genesis energy : Describe and evaluate the financial environment at Genesis Energy by using ratio analysis of the company. Name three specific options that are available to Genesis Energy for obtaining needed capital.
Fluctuations in insurance coverage : Because of fluctuations in insurance coverage, the average price paid out of pocket (P) by patients of an urgent care center varied, as the table shows. The number of visits per month (Q) also varied
Aspects of designing business presentations : Aspects of designing business presentations - Use an app or program such as Movenote, Knovio, Presentme, or another video recording application to complete this activity.
Discuss the ethical and governance issues : SPA242 Financial Accounting Assignment. Pringles Ltd is a large department store that has used the straight-line depreciation method since the company was first formed. Discuss the ethical and governance issues in changing the depreciation methods in..
Discuss the topic from the point of view of all stakeholders : Please, discuss the topic from the point of view of all stakeholders involved: patients, Big Pharma, researchers, and insurance companies. Provide solutions.
What effect does an increase in f have on savings : What effect does an increase in f have on savings? Does welfare increase or decrease in φ? Should we have the social security program when consumers have this from of myopia?

Reviews

Write a Review

Business Management Questions & Answers

  Question about personal selling and customer focusyou and

question about personal selling and customer focusyou and your sales colleagues at cavalier products have a lot of

  Assume that the lifetime of one brand of battery

Assume that the lifetime of one brand of battery is normally distributed with a mean of 700 hours and a standard deviation of 60 hours.

  Evaluate a reliable way to measure it stressconsider you

evaluate a reliable way to measure it stressconsider you want to do a study in which class participation is an

  Determining the willingness to adopt new product offerings

Health care consumers consumers vary in their willingness to adopt new product offerings, with some being quicker to adopt than others. Sggest the key reasons why you believe these variances exist. Provide a rationale with at least (1) example of ..

  Discuss-comment and organize your thoughts

There is one question in this exam. Your answer should be around 2000 words (4 Word pages). Your answers should be clear, precise, and to the point.

  Importance of the turnover of accounts receivables

What is the importance of the turnover of Accounts Receivables? Why is it is essential for organizations to keep cash reserves on hands?

  Problem regarding the profitability analysis

Sportway Inc. Is a wholesale distributer supplying a wide range of moderately priced sporting equipment to large chain stores? About 60 percent of Sportway's products are purchased from other companies while the remainder is manufactured by Sportw..

  Selecting appropriate graphics

Selecting Appropriate Graphics: Select the most effective graphic means of presenting the following data. Name the graphic presentation you choose and justify your decision.

  The monster website has a number of career resources

The Monster website has a number of career resources for individuals new to the job market, those looking for career advancement resources, or individuals looking for new job opportunities. For this assignment, complete the following steps:

  American recovery and reinvestment act of 2009identify a

american recovery and reinvestment act of 2009identify a clearer definition of risk and cost of capital for levered

  Define new technology in order to resolve problems

Do you think most companies implement new technology in order to resolve problems or because they're just seeking out new ways to improve their business? Explain your answer.Please include references.

  Explain proposing research for mindwriter

Explain Proposing Research for MindWriter and the Exploration Phase and How do these questions in the research proposal lead one towards a tangible end result defined by either higher service quality

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd