Develop a linear regression model that predicts total expenditures
based on the number of assigned beneficiaries.
c. Predict expenditures when the number of assigned beneficiaries is
10,000. What is the percentage change in predicted total
expenditures when the number of beneficiaries increases from
10,000 to 20,000?
d. Predict expenditures when the number of assigned beneficiaries is
50,000. What is the percentage change in predicted total
expenditures when the number of beneficiaries increases from
50,000 to 60,000?
e. Predict expenditures when the number of assigned beneficiaries is
100,000. What is the percentage change in predicted total
expenditures when the number of beneficiaries increases from
100,000 to 110,000?
f. What is the predicted number of assigned beneficiaries when total
expenditures are $100 million? What is the predicted number of
assigned beneficiaries when total expenditures are $500 million?
g. Based on your analysis, does this model suggest that ACOs are
more cost-effective? Support your conclusion.
