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Question 1- Determining multinomial category Option 1 – categorize counties by population – Most likely – Problem: uneven distribution GroupHospitals 1633456342 21016617444 33721923624 43374840 53120
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Question 1- Determining multinomial category Option 2 – categorize counties with hospitals by population – Even Distribution – Problem: less realistic GroupHospitals 1178913421073 2179013431074 3179113421074 413431074 51075
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Question 2 Should ownership be included in mlogit, regression, or both? Can county variables be included in regression when they were used to determine wage for the efficiency estimate?
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Question 3 Which Prediction? – Predicted group – Weighted average
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Actual123Total 182.99%2.54%14.47%629 241.35%3.18%55.47%1006 35.26%0.41%94.33%3686
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Actual123Total 159.13%38.16%2.71%1774 212.07%60.07%27.86%1773 30.73%46.17%53.10%1774
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Instrument Tests For Tercile1 Weighted average: t=28.00 Predicted Value: t=28.61 For Tercile 2 Weighted average: t=14.49 Predicted value: t=13.76
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