GfK Roper Consulting gathers information on consumer preferences around the world to help companies monitor attitudes about health, food, and healthcare products. They requested people in many different cultures how they felt about the following statement: I try to avoid eating fast foods. In a random sample of 800 respondents, 411 people were 35 years old or younger, and, of those, 197 agreed ( completely or somewhat), with the statement. Of the 389 people over 35 years old, 246 people agreed with the statement.

b) Provide a 90% confidence interval for the difference in proportions.

Economists use labor-market data to evaluate how well an economy is using its most valuable resource-its people. Two closely watched statistics are the unemployment rate and the employmentpopulation ratio (calculated as the percentage of the adult population that is employed). Explain what happens to statistic in the following scenario. In your opinion, which statistic is the more meaningful gauge of how well the economy is doing?

Advances in healthcare prolong the life of many retirees.

Healthcare professionals cite an enormous number of health problems related to obesity, and many people have an understandable desire to attain a healthy weight. There are many diet programs, services, and products on the market to aid those who wish to lose weight. If a close friend was considering purchasing or participating in one of these products, programs, or services, how would you make sure your friend was fully aware of the potential consequences of this decision? What sort of information would you want to review before making such an investment or lifestyle change yourself?

Every year, Fortune Magazine lists the 100 best companies to work for, based on criteria such as pay, benefits, turnover rate, and diversity. In 2013, the top three were Google, SAS, and CHG Healthcare. Of the top 30, 11 experienced double-digit job growth (10% or more), 16, single-digit growth ( $1 \%$ to $10 \%), 2$ had no growth, and Google did not report. Of the bottom 30, only 5 experienced double-digit job growth, 16 had single-digit growth, and 9 had no growth or job loss. Disregarding Google, is job growth in the best of the best places to work differently from job growth at the bottom of that elite list?

a) Choose the appropriate procedure.

According to the Gallup Poll, $27\%$ of U.S. adults have high levels of cholesterol. Gallup reports that such elevated levels "could be financially devastating to the U.S. healthcare system" and are a major concern to health insurance providers. According to recent analyses, cholesterol levels in healthy U.S. adults average about $215 \mathrm{mg} / \mathrm{dL}$ with a standard deviation of about $30 \mathrm{mg} / \mathrm{dL}$ and are roughly Normally distributed. If the cholesterol levels of a sample of 42 healthy U.S. adults are taken, what is the probability that the mean cholesterol level of the sample:

a) Will be no more than 215?

Every year, Fortune Magazine lists the 100 best companies to work for, based on criteria such as pay, benefits, turnover rate, and diversity. In 2013, the top three were Google, SAS, and CHG Healthcare. Of the top 30, 11 experienced double-digit job growth (10% or more), 16, single-digit growth ( $1 \%$ to $10 \%), 2$ had no growth, and Google did not report. Of the bottom 30, only 5 experienced double-digit job growth, 16 had single-digit growth, and 9 had no growth or job loss. Disregarding Google, is job growth in the best of the best places to work differently from job growth at the bottom of that elite list?

d) Test a suitable hypothesis and state your results.

The August 31 bank statement of Winchester’s Healthcare has just arrived from United Bank. To prepare the bank reconciliation, you gather the following data: a. The August 31 bank balance is $\$ 4,870$. b. The bank statement includes two charges for NSF checks from customers. One is for $\$ 400$ (#1), and the other for $\$ 110$ (#2). c. The following Winchester checks are outstanding at August 31:

$$\begin{array}{crr} \hline \text { Check No. } & \text { Amount } \\ \hline 237 & \$ & 50 \\ 288 & & \mid 70 \\ 291 & & \mid 520 \\ 294 & & \mid 580 \\ 295 & & 50 \\ 296 & & \mid 40 \\ \hline \end{array}$$

d. Winchester collects from a few customers by EFT. The August bank statement lists a $\$ 1,300$ EFT deposit for a collection on account. e. The bank statement includes two special deposits that Winchester hasn't recorded yet: $\$ 970$, for dividend revenue, and $\$ 80$, the interest revenue Winchester earned on its bank balance during August. f. The bank statement lists a $\$ 30$ subtraction for the bank service charge. g. On August 31, the Winchester treasurer deposited $\$ 350$, but this deposit does not appear on the bank statement. h. The bank statement includes a $\$ 1,000$ deduction for a check drawn by Multi-State Freight Company. Winchester notified the bank of this bank error. i. Winchester's Cash account shows a balance of $\$ 2,900$ on August 31 . Requirements

1. Prepare the bank reconciliation for Winchester's Healthcare at August 31, 2012.
2. Journalize any required entries from the bank reconciliation. Include an explanation for each entry.

In 2002, the average height of a woman aged 20–74 years was 64 inches with an increase of approximately 1 inch from 1960 (http://usgovinfo.about.com/od/healthcare). Suppose the height of a woman is normally distributed with a standard deviation of two inches. a. What is the probability that a randomly selected woman in this population is between 58 inches and 70 inches? b. What are the quartiles of this distribution? c. Determine the height that is symmetric about the mean that includes 90% of this population. d. What is the probability that five women selected at random from this population all exceed 68 inches?

Identify each of the following as a macroeconomic worry or a microeconomic concern, and explain your choice. a. Based on anticipated future consumer demand, Ford Motor Company is considering increasing the production of full-size SUVs. b. As a way to reduce the national budget, Congress is considering the possibility of enacting a value-added tax. c. The Federal Reserve makes the announcement that it is raising the discount rate in an effort to contain the rate of inflation. d. The Bureau of Labor Statistics estimates that from 2008 to 2018, the number of workers in the healthcare sector would rise by 22.5%.

MGM Resorts International owns and operates hotels and casinos including the MGM Grand and the Bellagio in Las Vegas, Nevada. As of a recent year, MGM reported accounts receivable of $415,654,000 and allowance for doubtful accounts of$93,760,000. Johnson & Johnson manufactures and sells a wide range of healthcare products including Band-Aids and Tylenol. As of a recent year, Johnson & Johnson reported accounts receivable of $10,114,000,000 and allowance for doubtful accounts of$340,000,000.

Discuss possible reasons for the difference in the two ratios computed in (a) and (b).

Although financial data are sketchy, an estimate from a construction company indicates that adding bed capacity would cost about $\$100,000$ per bed. In addition, the rate charged for the hernia surgery varies between about $\$900$ and $\$2,000$ (U.S. dollars), with an average rate of $\$1,300$ per operation. The surgeons are paid a flat $\$600$ per operation. Due to all the uncertainties in government healthcare legislation, Shouldice would like to justify any expansion within a five-year time period.

MGM Resorts International owns and operates hotels and casinos including the MGM Grand and the Bellagio in Las Vegas, Nevada. As of a recent year, MGM reported accounts receivable of $415,654,000 and allowance for doubtful accounts of$93,760,000. Johnson & Johnson manufactures and sells a wide range of healthcare products including Band-Aids and Tylenol. As of a recent year, Johnson & Johnson reported accounts receivable of $10,114,000,000 and allowance for doubtful accounts of$340,000,000.

"Consider how health insurance affects the quantity of healthcare services performed. Suppose that the typical medical procedure has a cost of $100, yet a person with health insurance pays only$20 out of pocket. Her insurance company pays the remaining $80. (The insurance company recoups the$80 through premiums, but the premium a person pays does not depend on how many procedures that person chooses to undertake.)

Draw the demand curve in the market for medical care. (In your diagram, the horizontal axis should represent the number of medical procedures.) Show the quantity of procedures demanded if each procedure has a price of $100."

Family First Healthcare operates two medical groups, one in Philadelphia and one in Baltimore. The semiannual bonus plan for each medical group’s president has three components: a. Profitability performance. Add 0.75% of operating income. b. Average patient waiting time. Add $40,000 if the average waiting time for a patient to see a doctor after the scheduled appointment time is less than 10 minutes. If average patient waiting time is more than 10 minutes, add nothing. c. Patient satisfaction performance. Deduct$45,000 if patient satisfaction (measured using a survey asking patients about their satisfaction with their doctor and their overall satisfaction with Family First Healthcare) falls below 70 on a scale from 0 (lowest) to 100 (highest). No additional bonus is awarded for satisfaction scores of 70 or more.

$$\begin{matrix} \text{} & \text{January-June} & \text{July-December}\\ \text{Philadelphia} & \text{} & \text{}\\ \text{Operating income} & \text{\$10,250,000} & \text{\$10,600,000}\\ \text{Average waiting time} & \text{8 minutes} & \text{12 minutes}\\ \text{Patient satisfaction} & \text{77} & \text{71}\\ \text{Baltimore} & \text{} & \text{}\\ \text{Operating income} & \text{\$9,000,000} & \text{\$7,500,000}\\ \text{Average waiting time} & \text{15 minutes} & \text{8 minutes}\\ \text{Patient satisfaction} & \text{64} & \text{73}\\ \end{matrix}$$

1. Compute the bonuses paid in each half year of 2017 to the Philadelphia and Baltimore medical group presidents. 2. Discuss the validity of the components of the bonus plan as measures of profitability, waiting time performance, and patient satisfaction. Suggest one shortcoming of each measure and how it might be overcome (by redesign of the plan or by another measure). 3. Why do you think Family First Healthcare includes measures of both operating income and waiting time in its bonus plan for group presidents? Give one example of what might happen if waiting time was dropped as a performance measure.