Question

Lancaster county hospital uses activity-based costing to determine the cost of serving patients. the hospital identified common treatments and developed the activity-based cost per patient by treatment. the activities and activity rates for a patient receiving coronary bypass surgery are as follows:

Answer 1

A survey of 100 hospitals in Massachusetts using simple random sampling would yield a representative average cost for a two-day hospital stay. This method provides each hospital an equal chance of selection.

Step-by-step explanation:

To determine the average cost of a two-day stay in a hospital in Massachusetts, one would conduct a survey using simple random sampling of 100 hospitals across the state. This statistical method ensures that every hospital has an equal chance of being selected which results in a representative sample of the entire population of hospitals. The information gleaned from this survey can then be analyzed to produce an average cost figure. Reference to Stensland, Watson, and Grazier's (2012) work suggests looking at the complexities behind hospital billing practices, especially concerning inpatient psychiatric treatment, to understand that the cost discussed might involve various factors that go beyond the room rate and may include treatments, staff involvement, and medication.