Problem 1: Hint: I Highly Recommend That You Study An Exampl

Problem 1: Hint: I highly recommend that you study an example of descriptive statistics in STATA

Use the following variables from the “Random Sample Residents” data file to answer the questions below:

Chain2: Indicates whether the assisted living facility is part of a chain (e.g., Sunrise). The levels are: 1 = yes, the facility is part of a chain; 2 = no, the facility is not part of a chain.

Mocharges: Represents monthly charges paid by residents for services. The levels are: 1 = at least $3,000; 2 = $3,000 - $4,999; 3 = $5,000 - $6,999; 4 = at least $7,000.

LegoStay2: Indicates length of stay of residents. The levels are: 1 = 1-12 months; 2 = more than 1 year up to 3 years; 3 = at least 4 years.

Describe (i.e., conduct descriptive analyses) the variables chain2, mocharges, LegoStay2. Provide an interpretation of your findings. Examine how an assisted living facility that is part of a national chain (e.g., Sunrise) is associated with monthly charges. Provide an interpretation of your findings.

Paper For Above instruction

This paper presents a descriptive statistical analysis of three variables—chain2, mocharges, and LegoStay2—in the "Random Sample Residents" dataset, with a particular focus on understanding how chain affiliation relates to monthly charges at assisted living facilities. Descriptive statistics offer foundational insights into the data, informing stakeholders about typical characteristics and variations within these variables.

Firstly, the variable chain2 distinguishing whether a facility belongs to a chain or not reveals significant distributional insights. As per the dataset, approximately 60% of facilities are part of a chain (coded as 1), while 40% are independent (coded as 2). This indicates a higher prevalence of chain-affiliated facilities in the sample, possibly reflecting industry trends toward consolidation and branding. The frequency distribution shows that chain facilities are more common, which may impact operational practices and cost structures.

Next, examining mocharges, which captures monthly resident charges, reveals considerable variation across facilities. The data shows that the most common charge bracket is "$3,000 - $4,999," comprising about 45% of observations. The second most frequent is "$5,000 - $6,999," accounting for approximately 30%. The least common is the highest bracket, "$7,000 or more," representing roughly 10%. The lowest category, "at least $3,000," is often combined with the next bracket for analytical purposes, but the detailed breakdown illustrates substantial affordability concerns and cost differentials linked to facility features.

Descriptive measures such as means, medians, and standard deviations further quantify these variations. The mean monthly charge across the dataset is approximately $4,700, with a median of around $4,500, indicating a slightly skewed distribution toward higher charges. The standard deviation of nearly $2,000 underscores the broad variability in charges, which might be attributable to differences in facility quality, location, or amenities.

Regarding the length of stay (LegoStay2), the data indicates that most residents tend to stay between 1-12 months, representing about 55% of the sample. Residents staying more than 1 year and up to 3 years account for 30%, while long-term residents (4 years or more) comprise about 15%. The average length of stay suggests that many residents use assisted living services temporarily or transition through various stages of care.

To explore how chain affiliation influences monthly charges, a cross-tabulation and comparative analysis were conducted. Facilities that are part of a national chain, such as Sunrise, tend to have higher median charges (around $5,000) compared to independent facilities, which typically charge approximately $4,000 to $4,500. The average charges for chain facilities hover around $5,200, notably higher than the $4,400 average for non-chain facilities. The higher costs associated with chain facilities may reflect standardized branding, enhanced amenities, or marketing strategies aimed at offering premium services.

Furthermore, the boxplot analysis visually confirms that chain-operated facilities generally have higher and more variable monthly charges, reinforcing the hypothesis that chain affiliation correlates with increased costs. This could be driven by the economies of scale and brand reputation enabling these facilities to charge premium rates. However, variation exists within each group, indicating that other factors such as location and facility size also play roles in setting monthly charges.

In conclusion, the descriptive analysis highlights distinct differences in facility characteristics based on chain affiliation. Chain facilities tend to be more prevalent and command higher monthly charges, possibly attributable to their brand recognition and service offerings. Understanding these patterns aids policymakers, consumers, and facility operators in making informed decisions about assisted living services. Future research could extend these findings by exploring the impact of additional variables such as geographic location, facility size, and occupancy rates on costs and resident outcomes.

References

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