Consider the numbers of community hospital beds per 1000 population that are available in each state in the US and District of Columbia. The data for both 1980 and 1986 are in the data set bed.dta. The values for 1980 are saved under the variable name bed80; those for 1986 under bed86. (3 points) Generate descriptive statistics for the numbers of hospital beds in each year. (5 points) Since there are two observations for each state—one for 1980 and one for 1986—the data are paired. A common error analyzing this type of data is to ignore the pairing and assume that the samples are independent. Compare the mean number of community hospital beds per 1000 population in 1980 to the mean number of beds in 1986 using a two-sample t-test. What do you conclude? (5 points) Now compare the mean number of beds in 1980 to the mean number in 1986 using the paired t-test. (3 points) Comment on the differences between the two tests. Do you reach the same conclusion in each case? What is the main difference between the two tests? (5 points) Give a 95% confidence interval for the true difference in the mean number of hospital beds in 1980 and 1986 and interpret in the context of the problem.
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