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Study the elfect of = cash incentive the response rales mail survev; urouD of 4675 Medicaid enrollees reccived $2 in cash along with the sunvey: Anotnen group the s...

Question

Study the elfect of = cash incentive the response rales mail survev; urouD of 4675 Medicaid enrollees reccived $2 in cash along with the sunvey: Anotnen group the same size received the same survev; but no money: initial response rates were 4796 conside pach andom snmple Medicaid enrollee' Isqurcar Timothy Beebe et al; TTne and 3996. respccu You droup Incentv Amono Low Income anu Minont Populations njper Effect of Prepaid Monetary presented the annual mecting amencan Accocintion Public Opin

study the elfect of = cash incentive the response rales mail survev; urouD of 4675 Medicaid enrollees reccived $2 in cash along with the sunvey: Anotnen group the same size received the same survev; but no money: initial response rates were 4796 conside pach andom snmple Medicaid enrollee' Isqurcar Timothy Beebe et al; TTne and 3996. respccu You droup Incentv Amono Low Income anu Minont Populations njper Effect of Prepaid Monetary presented the annual mecting amencan Accocintion Public Opinion Research, Pointe Hilton Tapatio Cliffs , phoemi, Nay 2004 downloaded irom M lncademc commalj d 5965 inderhtmnl 0n Fcdnan 7009 Kounu Youi nsiens decima Olace5 compule 050/ contidenceintervi ahe pciccntaqe Hedicaid enrollees Who would return the survey they receive $2 . 9580 confidence Intenal: Compute 958 confidence interval cash Incentive the percentage all Medicaid enrollees who would return the survey they receive 959 confidence Interval: Intervals nams VOU convinced that the two parameters dlfferent? Based



Answers

State government Medicaid programs provide medical insurance to poor and disabled people. Under federal law, the programs must provide reimbursements to people who use any prescription drug that has been approved as effective by the U.S. Food and Drug Administration $(\mathrm{FDA})$ . In recent years, pharmaceutical firms have developed new prescription drugs that cost as much as $\$ 1,000$ per pill to treat hepatitis $\mathrm{C}$ , a liver disease. A news story notes, "State Medicaid programs are particularly sensitive to annual cost increases... [because] coverage is paid for, in part, out of state budgets, which have to be balanced every year." What trade-offs do state governments face when new prescription drugs are introduced with much higher prices than existing drugs? Do you agree with the federal law requiring that Medicaid programs must cover every drug that has FDA approval? Briefly explain.

All right. So allegedly the percentage of people doc covered by health care insurance in 2003 was 15.6% and a congressional committee wants to know about the sample survey to obtain more information. Now for part A. We want to find the sample size that we would recommend in order to estimate the current proportion of individuals without health care insurance with a margin of error a zero points or three using conference level of 95%. So I have already written down our formula earlier in the chapter. Now let's fill in some of these variables, you know, our e to be I don't know where all the scream marks came from. So group anyway, you know r E or, uh what margin, Vera, We want to be 0.3 We have RP star trial p ah to be 15.6%. So 0.156 and we know you want 95% confidence, which corresponds to Z level uh, 1.96 All right, let's plug this all into our formula So and equals. 1.96 squared times 0.156 times one minus 0.56 which is 1.844 all divided by 0.3 squared. Enter that into a calculator and rounding. You should get that end goes 563. All right, Harvey. Exact same problem. But now with a 95% confidence are sorry. 99% confidence. I think I said 95 just now. So you still 0.3 p star? Still 0.156 99%. Confidence corresponds. Hypocritical value. A 2.575 Again. Something you can check on your own Z score table. Yes, sir. Zia Zia. Critical value. So an equals 2.575 squared times 0.156 time. 0.894 all over 0.3 square. Look, visit to a calculator and rounding. You should get that end because 971 and there you have it


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