Overview of Quantitative Research Methods Florida Legislature Office of Program Policy Analysis & Government Accountability 1 Training Overview Describes when quantitative analyses are appropriate Provides an overview of four techniques • Describing the central tendency and variation • • • in a group Analyzing trends in program expenditures Regression analysis Survival analysis Florida Legislature Office of Program Policy Analysis & Government Accountability 2 Elements of a Finding Criteria Condition Significance Cause Recommendation Florida Legislature Office of Program Policy Analysis & Government Accountability 3 Questions Addressed by Quantitative Analysis How typical? What fraction? How many or how much? What has changed? How does one group compare with other groups? Florida Legislature Office of Program Policy Analysis & Government Accountability 4 The Power of Quantitative Analysis Where anecdotes can provide rich descriptions of a few, quantitative analysis can be used to describe large aggregates Quantitative analysis enjoys the legitimacy of the “objectivity” promised by mathematical analysis Florida Legislature Office of Program Policy Analysis & Government Accountability 5 Techniques Describing groups - central tendency and variation Analyzing trends in program expenditures Regression analysis Survival analysis Florida Legislature Office of Program Policy Analysis & Government Accountability 6 Central Tendency and Variation Mean (average) Median Mode Range Florida Legislature Office of Program Policy Analysis & Government Accountability 7 Teacher Salaries: District A Avg. = $40,300 Florida Legislature Office of Program Policy Analysis & Government Accountability 8 Teacher Salaries: District B Avg. = $40,300 Florida Legislature Office of Program Policy Analysis & Government Accountability 9 Teacher Salaries: District C Avg. = $40,300 Florida Legislature Office of Program Policy Analysis & Government Accountability 10 Teacher Salaries: District D Avg. = $40,300 Florida Legislature Office of Program Policy Analysis & Government Accountability 11 Analyzing Trends in Expenditures Annual percent change Average annual percent change Disaggregating expenditures Florida Legislature Office of Program Policy Analysis & Government Accountability 12 Measures of Change Annual percent change ($T2 - $T1) / $T1 or ($T2 / $T1) - 1 Average annual percent change ($T5 / $T1) 1 / (# years*) – 1 * # of years = 4 in this case Florida Legislature Office of Program Policy Analysis & Government Accountability 13 Trends in Medicaid Expenditures Fiscal Year Total Medicaid Expenditures Average Annual % Increase Medicaid Prescription Drug Expenditures 1995-96 $6,139,478,988 $608,513,970 1996-97 $6,281,428,233 $730,569,270 1997-98 $6,611,527,446 $845,774,833 1998-99 $6,946,629,422 $1,027,454,370 1999-00 $7,763,865,817 6.0% $1,313,358,605 Average Annual % Increase 21.2% Florida Legislature Office of Program Policy Analysis & Government Accountability 14 Disaggregating Expenditures Into Factors Driving Expenditures Factors Driving Drug Expenditures FY1995-96 FY1999-00 Average Annual % Increase Total Expenditures (Volume x Price) $608,513,9 70 $1,313,358,6 05 21.2% Volume (# of prescriptions) 17,689,068 22,158,912 5.8% Population (# enrollees) 1,150,162 1,155,079 0.1% 1.28 1.60 5.7% $34.40 $59.27 14.6% Utilization (scripts / enrollee) Price Florida Legislature Office of Program Policy Analysis & Government Accountability 15 Regression Analysis Y = a + B(X1) + B(X2) + B(X3) + . . . Regression analysis estimates Y given values of X1, X2, X3, etc. The Bs indicate the independent effect the Xs have on Y. Florida Legislature Office of Program Policy Analysis & Government Accountability 16 Estimating Hospice Expenditures Total Expenditures Hospices reporting expenditures (N=37) $910,272,301 Hospices not reporting expenditures (N=6) $0 Florida Legislature Office of Program Policy Analysis & Government Accountability 17 Estimating Hospice Expenditures Florida Legislature Office of Program Policy Analysis & Government Accountability 18 Estimating Hospice Expenditures Hospices reporting expenditures (N=37) Hospices not expenditures (N=6) Total Total Expenditures $910,272,301 $193,073,565 $1,103,345,866 Florida Legislature Office of Program Policy Analysis & Government Accountability 19 Examining Cost Effectiveness Average 3-Yr. Costs Per Person Nursing Total $ Home $ Waiver $ Other $ Nonwaiver $39,896 $25,556 $0 $14,340 Waiver $59,497 $3,937 $53,575 $1,985 Florida Legislature Office of Program Policy Analysis & Government Accountability 20 Examining Cost Effectiveness Avg. Avg. Total $ Months Nonwaiver Waiver Avg. Monthly $ Adj. Monthly $ $39,896 19.5 $2,046 $2,558 $59,497 26.2 $2,271 $2,657 Difference $225 $99 Florida Legislature Office of Program Policy Analysis & Government Accountability 21 Survival Analysis Kaplan-Meier Cox regression Florida Legislature Office of Program Policy Analysis & Government Accountability 22 Survival Analysis – How Long Until? Florida Legislature Office of Program Policy Analysis & Government Accountability 23 Review 1. Under what conditions is the mean (average) not the best measure of central tendency? 2. What are the best measures of central tendency under these conditions? Florida Legislature Office of Program Policy Analysis & Government Accountability 24 Review Why is using the geometric mean for the average annual percent change more appropriate than average of the annual percent changes in Year Expenditures Avg. annual percent change column B? Annual percent change 2006 $500,000 2007 $525,000 5.00% 2008 $526,000 0.19% 2009 $535,000 1.71% 2010 $542,000 1.31% (geometric mean) 2.04% Florida Legislature Office of Program Policy Analysis & Government Accountability 25 Review What are some instances where it would be important to adjust for the characteristics of members of a group when comparing multiple groups on an outcome (e.g., cost effectiveness)? Would regression analysis be appropriate? Florida Legislature Office of Program Policy Analysis & Government Accountability 26 Review Survival analysis techniques are a better alternative to estimating how long it takes an event to occur (e.g., release from a treatment facility). What is the disadvantage of the more commonly used average length of stay for persons released in a year? Florida Legislature Office of Program Policy Analysis & Government Accountability 27