Nevada offers its state employees a choice of two different medical insurance programs. The first pr Show more Nevada offers its state employees a choice of two different medical insurance programs.
Nevada offers its state employees a choice of two different medical insurance programs. The first pr Show more Nevada offers its state employees a choice of two different medical insurance programs.
The first program is a self-funded program while the other program operates more like a HMO program. The self funded program depends more on the premiums paid by the employees so to help decrease costs the program has a wellness program where insured employees get reduced premiums if they participate in prescribed medical care nutrition and exercise programs. The HMO insurance option does no offer this program. The state wants to determine if theres a difference in per employee overall health costs between the self-funded program and the HMO program. To examine this issue the state took a random sample of total medical costs for a sample of self-funded employees and a second sample of total medical costs for a sample of HMO employees. Task: Perform what you believe is necessary to determine whether the mean total medical costs for self-funded employees differs from the mean total costs for the HMO employees given the data in the picture. What kind of information should I prepare? Show less
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