Reference no: EM132379445

Question :

Recent research into the cost of various medical procedures has shown the impact of certain complications encountered in surgery on the total cost of a patient's stay in the hospital. The researchers used regression analysis and found the following results:

Total cost for patient = Constant, plus

a x Length of stay (measured in days), plus

b x Presence of one or more complications (=1 if true, 0 if false), plus

c x Use of a laparoscope (= 1 if true, 0 if false)

where a, b, c are coefficients of the regression model. The laparoscope is an instrument somewhat like a miniature telescope with a fiber-optic system that brings light into the abdomen. It is about as big around as a fountain pen and twice as long.

The research, based on 60 patients, showed the following regression results:

R-squared: 52%

Constant term: $3,630

Coefficients and t-values for independent variables:

                    Length of Stay       Complications       Laparoscope
Coefficient          $734                $1,602              $948
t-value               8.45               5.01                 2.47

Required:

What is the estimated cost for a patient whose surgery has complications and who stays in the hospital 5 days, and whose surgery requires a laparoscope?