Question 74940
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Mr >jones believes that, length of stays in hospitals is dependent on the types of health isurance that people have. He asked the head of R & D department to check this out – who duly collected data on a random sample of 600 hospitals stays. the data is summarized below : 
Days is hospitals 

<5 days 5-10 days >10 days 
Fraction of costs <25% 40 75 65 
covered by insurance 25-50% 30 45 75 
>50 % 40 100 190 
Prepare a statistical analysis to determine whether Mr. Jones’s concern is supported by empirical evidence. You may use 5 % level of significance 
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Ho: rows are independent
Ha: rows are not independent
Ran a Chi-Square test on the 3x3 set of data using a TI calculator.
Chi-Square = 24.32
p value = 0.000069041
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Conclusion:
Since p value is less than alpha Reject Ho.
Length of stay in the hospital seems dependent
on % of insurance.
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Cheers,
Stan H.