Reference no: EM131862041

Question: Financial/Analytical Question #2: Note that there are conceptual issues in each of the 4 Financial Assignments. You should specifically identify any assumptions that you make and justify the decision(s) made.

FAQ#2: PATE MEMORIAL HEALTH CLINIC

The data cross-tabulated below have been obtained from a "representative" sample of employees in the 5 block radius of the Clinic. (see Exhibit 3 of the case)

Have regular physician?

Would use/try CLINIC if necessary?

             Yes        No       Total

Yes         58        198        256

No          130        14         144

Total       188       212         400

1. Which variable is the causal factor (C)? Which variable is the effect (E)? Explain your reasoning!

2. Briefly explore the meaning of the data above - there is no need to employ a formal (chi-square) statistical analysis. What are the implications for target marketing?

The data above is again presented below:

Sex

Would use/try CLINIC if necessary?

           M          F        Total

Yes      88       168        256

No       72        72         144

Total  160       240         400

3. Again, which variable is the causal factor (C)? Which variable is the effect (E)? Explain your reasoning!

4. Briefly explore the meaning of the data above - there is no need to employ a formal (chi-square) statistical analysis. What are the implications for target marketing?

5. Which independent variable (causal factor) is the stronger predictor of potential clinic patronage? Briefly explain.

6. Suggest how interaction effects might enhance your knowledge of Clinic patronage. (Hint: review the "Causation" file)