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# Healthcare expenses of its employees have been weighing dow

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Manager
Joined: 30 Jan 2017
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Healthcare expenses of its employees have been weighing dow  [#permalink]

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20 Aug 2017, 00:17
2
3
00:00

Difficulty:

95% (hard)

Question Stats:

29% (02:01) correct 71% (02:25) wrong based on 48 sessions

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Healthcare expenses of its employees have been weighing down on the profits of Honeywell Inc. Analyzing the expenses, Honeywell Inc discovered that while there was no significant difference in the expenses per capita based on the age of the employee, most expenses were for the operating procedures that required hospitalization. However, far fewer than half of all Honeywell employees reported being hospitalized.

Based on the veracity of the facts stated above, which of the following can be correctly inferred ?

a. Most Honeywell employees who underwent procedure paid little or nothing out of pocket to cover the cost of procedures.
b. Those who underwent procedures did not have a choice to avoid hospitalization.
c. Procedures that required hospitalization had higher per capita expenses than procedure that did not.
d. The average expense per employee was lower for employees who did not undergo operation procedures that required hospitalization.
e. Honeywell covered a higher proportion of healthcare expenses for employees who underwent operation procedures that required hospitalization than those who did not.

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Re: Healthcare expenses of its employees have been weighing dow  [#permalink]

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20 Aug 2017, 00:56
fmik7894 wrote:
Healthcare expenses of its employees have been weighing down on the profits of Honeywell Inc. Analyzing the expenses, Honeywell Inc discovered that while there was no significant difference in the expenses per capita based on the age of the employee, most expenses were for the operating procedures that required hospitalization. However, far fewer than half of all Honeywell employees reported being hospitalized.

Based on the veracity of the facts stated above, which of the following can be correctly inferred ?

a. Most Honeywell employees who underwent procedure paid little or nothing out of pocket to cover the cost of procedures.
b. Those who underwent procedures did not have a choice to avoid hospitalization.
c. Procedures that required hospitalization had higher per capita expenses than procedure that did not.
d. The average expense per employee was lower for employees who did not undergo operation procedures that required hospitalization.
e. Honeywell covered a higher proportion of healthcare expenses for employees who underwent operation procedures that required hospitalization than those who did not.

a. Most Honeywell employees who underwent procedure paid little or nothing out of pocket to cover the cost of procedures. ----Incorrect. It is an inference question so outside information is not allowed. Out of Scope
b. Those who underwent procedures did not have a choice to avoid hospitalization.----Incorrect. It is an inference question so outside information is not allowed. Out of Scope
c. Procedures that required hospitalization had higher per capita expenses than procedure that did not.----Incorrect. It is an inference question so outside information is not allowed. no information about other procedures available. Out of Scope
d. The average expense per employee was lower for employees who did not undergo operation procedures that required hospitalization.------Correct.
this clearly states that not getting operated is less expensive than getting operated. so the operating procedures must be expensive leading to increased healthcare expenses

e. Honeywell covered a higher proportion of healthcare expenses for employees who underwent operation procedures that required hospitalization than those who did not.----Incorrect. It is an inference question so outside information is not allowed. employee coverage amount is not mentioned in the argument.Out of Scope
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Re: Healthcare expenses of its employees have been weighing dow  [#permalink]

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22 Aug 2017, 03:21
fmik7894 wrote:
Healthcare expenses of its employees have been weighing down on the profits of Honeywell Inc. Analyzing the expenses, Honeywell Inc discovered that while there was no significant difference in the expenses per capita based on the age of the employee, most expenses were for the operating procedures that required hospitalization. However, far fewer than half of all Honeywell employees reported being hospitalized.

Based on the veracity of the facts stated above, which of the following can be correctly inferred ?

a. Most Honeywell employees who underwent procedure paid little or nothing out of pocket to cover the cost of procedures.
b. Those who underwent procedures did not have a choice to avoid hospitalization.
c. Procedures that required hospitalization had higher per capita expenses than procedure that did not.
d. The average expense per employee was lower for employees who did not undergo operation procedures that required hospitalization.
e. Honeywell covered a higher proportion of healthcare expenses for employees who underwent operation procedures that required hospitalization than those who did not.

Honeywell healthcare expense is high. why?

because of operating procedure that require hospitilization.

So lets say total 100 rs was the expense.
60 went to OP with hosiptalization.
40 went to OP with no hosiptalization.

and lets say total 10 employee claimed for it.
far fewer than half of all Honeywell employees reported being hospitalized
so
2 people hospitalized
8 people not hospitalized

c. Procedures that required hospitalization had higher per capita expenses than procedure that did not.

Procedures that required hospitalization per capita expense
= 60/2 =30

procedure that did not.
=40/8 = 5
so yes, this is true.

d. The average expense per employee was lower for employees who did not undergo operation procedures that required hospitalization.

true

e. Honeywell covered a higher proportion of healthcare expenses for employees who underwent operation procedures that required hospitalization than those who did not.

yes, thats true
60 is greater than 40.

To me, C,D, E all right.
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Re: Healthcare expenses of its employees have been weighing dow  [#permalink]

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22 Aug 2017, 09:17
niks18 wrote:
fmik7894 wrote:
Healthcare expenses of its employees have been weighing down on the profits of Honeywell Inc. Analyzing the expenses, Honeywell Inc discovered that while there was no significant difference in the expenses per capita based on the age of the employee, most expenses were for the operating procedures that required hospitalization. However, far fewer than half of all Honeywell employees reported being hospitalized.

Based on the veracity of the facts stated above, which of the following can be correctly inferred ?

a. Most Honeywell employees who underwent procedure paid little or nothing out of pocket to cover the cost of procedures.
b. Those who underwent procedures did not have a choice to avoid hospitalization.
c. Procedures that required hospitalization had higher per capita expenses than procedure that did not.
d. The average expense per employee was lower for employees who did not undergo operation procedures that required hospitalization.
e. Honeywell covered a higher proportion of healthcare expenses for employees who underwent operation procedures that required hospitalization than those who did not.

a. Most Honeywell employees who underwent procedure paid little or nothing out of pocket to cover the cost of procedures. ----Incorrect. It is an inference question so outside information is not allowed. Out of Scope
b. Those who underwent procedures did not have a choice to avoid hospitalization.----Incorrect. It is an inference question so outside information is not allowed. Out of Scope
c. Procedures that required hospitalization had higher per capita expenses than procedure that did not.----Incorrect. It is an inference question so outside information is not allowed. no information about other procedures available. Out of Scope
d. The average expense per employee was lower for employees who did not undergo operation procedures that required hospitalization.------Correct.
this clearly states that not getting operated is less expensive than getting operated. so the operating procedures must be expensive leading to increased healthcare expenses

e. Honeywell covered a higher proportion of healthcare expenses for employees who underwent operation procedures that required hospitalization than those who did not.----Incorrect. It is an inference question so outside information is not allowed. employee coverage amount is not mentioned in the argument.Out of Scope

Healthcare expenses of its employees have been weighing down on the profits of Honeywell Inc. Analyzing the expenses This clearly states Honeywell is paying for those expenses.
However the correct explanation IMO is since question talks about per capita, we cannot talk about real figures. D correctly states per capita(average) is more, which is true.
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Re: Healthcare expenses of its employees have been weighing dow  [#permalink]

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22 Aug 2017, 10:18
1
sandy217 wrote:
niks18 wrote:
fmik7894 wrote:
Healthcare expenses of its employees have been weighing down on the profits of Honeywell Inc. Analyzing the expenses, Honeywell Inc discovered that while there was no significant difference in the expenses per capita based on the age of the employee, most expenses were for the operating procedures that required hospitalization. However, far fewer than half of all Honeywell employees reported being hospitalized.

Based on the veracity of the facts stated above, which of the following can be correctly inferred ?

a. Most Honeywell employees who underwent procedure paid little or nothing out of pocket to cover the cost of procedures.
b. Those who underwent procedures did not have a choice to avoid hospitalization.
c. Procedures that required hospitalization had higher per capita expenses than procedure that did not.
d. The average expense per employee was lower for employees who did not undergo operation procedures that required hospitalization.
e. Honeywell covered a higher proportion of healthcare expenses for employees who underwent operation procedures that required hospitalization than those who did not.

a. Most Honeywell employees who underwent procedure paid little or nothing out of pocket to cover the cost of procedures. ----Incorrect. It is an inference question so outside information is not allowed. Out of Scope
b. Those who underwent procedures did not have a choice to avoid hospitalization.----Incorrect. It is an inference question so outside information is not allowed. Out of Scope
c. Procedures that required hospitalization had higher per capita expenses than procedure that did not.----Incorrect. It is an inference question so outside information is not allowed. no information about other procedures available. Out of Scope
d. The average expense per employee was lower for employees who did not undergo operation procedures that required hospitalization.------Correct.
this clearly states that not getting operated is less expensive than getting operated. so the operating procedures must be expensive leading to increased healthcare expenses

e. Honeywell covered a higher proportion of healthcare expenses for employees who underwent operation procedures that required hospitalization than those who did not.----Incorrect. It is an inference question so outside information is not allowed. employee coverage amount is not mentioned in the argument.Out of Scope

Healthcare expenses of its employees have been weighing down on the profits of Honeywell Inc. Analyzing the expenses This clearly states Honeywell is paying for those expenses.
However the correct explanation IMO is since question talks about per capita, we cannot talk about real figures. D correctly states per capita(average) is more, which is true.

Hi sandy217

per capita expenditure has not increased (the stem states that "while there was no significant difference in the expenses per capita...")

net per capita did not increase because increased operating cost has been negated by less hospitalization. IMO, Option D talks about per capita to explain that costs were lower if employee did not undergo operating procedures.
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Re: Healthcare expenses of its employees have been weighing dow  [#permalink]

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22 Aug 2017, 12:21
Hi

Percapita based on age is different from per capita of who require hospitalization and who do not require. Stem says Percapita doesnt change across age groups (to rule out any additional expenses because of aging. )

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Re: Healthcare expenses of its employees have been weighing dow  [#permalink]

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07 May 2019, 08:35
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Re: Healthcare expenses of its employees have been weighing dow   [#permalink] 07 May 2019, 08:35
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