Descriptive Analysis

The admission and expense trends are negatively affected by the outliers in the third percentile. They are above the average line from both the admissions and expenses from the trend. It is an indication that there is an increase in the number of patients admitted to the health care facility. However, the number of beds available to accommodate the patients is not sufficient. In the process, there is an increase in the expenses since the outliers in the third percentile are rising the cost to move above the average line. The data points are below the average line for the admissions and expenses and less than those situated above. Hence, the inclination is towards the top, implying an increase in the number of admitted patients and the expenses within the health care facility.

The initial hypothesis for the descriptive analysis posits that opening a medium-sized facility with a capacity accommodating between 300 and 350 beds will be more costly than the first alternative. Therefore, the provided $55 to $75 million budget will be suitable for option A. That is because there will be an opportunity to upgrade the health care facility without a massive increase in the number of admissions and the anticipated expenses.

Choosing admissions and expenses and the main attributed for analysis is because there depicts the direct relationship and the connection between the input and output. A key trend observed in the analysis was increased expenses when admission was on the rise. It is an indication that there will be a need to increase the health care facility and resources to meet the rising level of demand.