A New England Journal of Medicine study (November 1986) foundthat a substantial portion of acute hospital care is reported to beunnecessary. The physicians who conducted the study reviewed themedical records of 1,132 patients hospitalized at six differentlocations across the country. Overall, 60% of admissions in thesample were judged to be appropriate, 23% were deemedinappropriate, whereas 17% could have been avoided by the use ofambulatory surgery. Let p1, p2, and p3 represent the truepercentages of hospital admissions in the three aforementionedcategories: appropriate, inappropriate, and avoidable by ambulatorysurgery, respectively. Using the techniques from categorical dataanalysis in a “one-way tableâ€, answer the following questions:
(a) Construct 90% confidence intervals for p1,p2, and p3.
(b) Let H0 be the null hypothesis stating that p1=0.60, p2=0.25,p3=0.15. Formulate an appropriate alternative hypothesis Ha, andthen test H0 using α =0.10.
