Applied Statistical Model

The NMES1988 dataset in the AER package contains information on the demand for medical care in the US in 1987 and 1988. Specifically it has the following columns: asexcellent”. (aslimited”) or not (asnormal”). visits: Number of physician office visits. nvisits: Number of non-physician office visits. ovisits: Number of physician hospital outpatient visits. novisits: Number of non-physician hospital outpatient visits. emergency: Emergency room visits. hospital: Number of hospital stays. health: Factor indicating self-perceived health status levels are aspoor” asaverage” (reference category) chronic: Number of chronic conditions. adl: Factor indicating whether the individual has a condition that limits activities of daily living region: Factor indicating region levels are northeast midwest west other (reference category). age: Age in years (divided by 10). afam: Factor. Is the individual African-American? gender: Factor indicating gender. married: Factor. is the individual married? school: Number of years of education. income: Family income in USD 10000. employed: Factor. Is the individual employed? insurance: Factor. Is the individual covered by private insurance? medicaid: Factor. Is the individual covered by Medicaid?