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Statistics for Health Care Management and Administration by David A. Rosenthal, John F. Kros

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Chapter 10Analysis of Variance

Chapter 1 introduced several different questions that could be addressed using statistics. One of these was the question of whether eight hospitals in a hospital alliance differed from one another in length of stay, readmission rates, or cost per case. If we were interested in whether just two of the hospitals differed from one another, we could use a t test. As presented earlier, a t test is a test of whether a numerical variable is independent of a categorical variable that takes on only two values. But in this case, the question is whether a numerical variable is independent of a categorical variable that may take on more than two values—here, eight. One statistical test that can be used to determine if a numerical variable is independent of a multilevel categorical variable is analysis of variance, commonly referred to as ANOVA.

10.1 One-Way Analysis of Variance

A one-way analysis of variance is a technique used to compare ...

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