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Optimizing Multinomial Categorization for County Population Analysis

Explore different options for categorizing counties based on population distribution and consider inclusion of hospital ownership for more accurate analysis. Investigate the feasibility of including county variables in regression models alongside wage determination. Compare predictive accuracy and effectiveness of weighted averages in instrument tests across different population categories.

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Optimizing Multinomial Categorization for County Population Analysis

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  1. Question 1 - Determining multinomial category • Option 1 – categorize counties by population • Most likely • Problem: uneven distribution

  2. Question 1 - Determining multinomial category • Option 2 – categorize counties with hospitals by population • Even Distribution • Problem: less realistic

  3. 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?

  4. Question 3 • Which Prediction? • Predicted group • Weighted average

  5. 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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