Statistical Concepts Applicable in Healthcare

Statistical Concepts
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Statistical Concepts
Part 1
The four major type of scales that can be used to measure variables are nominal scale, ordinal scale, interval scale, and ratio scale. A nominal scale defines a measurement scale that assigns given set of object into distinct categories that are mutually exclusive. The categories have no distinct order. For example, the variable gender can be assigned into either male or female categories. Dalati (2018) observes that the categories assigned to nominal data are collectively exhaustive in the sense that every objects fits into a category.
An ordinal scale is a type of measurement that gives the order and rank of data but does not define the extent to which the assigned objects vary from each other. For example, students’ ranking following an exam. Thus, ordinal scale shows relative ranking of variables by identifying and describing the magnitude of the variable. To this end, an ordinal scale offers a statement of greater of less than without offering an indication of how much a given value is less than or greater than.
Interval scale of measurement describes a quantitative measurement scale that quantifies the difference among value in a meaningful manner. As opposed to an ordinal scale, the variables in an interval scale are highly exact as opposed to relative. That is, there is a fixed distance between the positions on an interval scale (Dalati, 2018). The ratio scale is a quantitative scale that has an absolute zero and allows researchers to define the difference between variables. Ratio scale such as length or height allows statistical analysis in an orderly manner and allows for unit conversion.
Column

Title

Scale

A

DRG Definition

Nominal

B

Provider ID

Nominal

C

Provider Name

Nominal

D

Provider Street Address

Nominal

E

Provider City

Nominal

F

Provider State

Nominal

G

Provider Zip Code

Nominal

H

HHR Description

Nominal

I

Total Discharges

Ratio

J

Average Covered Charges

Ratio

K

Average Total Payment

Ratio

L

Average Medicare Payment

Ratio

Part 2
Mean is a measure of central tendency that offers a description of the average value of a data set. As such, mean is a sum of all...