Appendix A
ACR Questions
Tests for Determining Compliance with Parity
1. A standardized Z-test is proposed for purposes of determining compliance with parity. Explain why this standard textbook statistical test cannot serve as a measurement tool at least for the duration of the six-month trial pilot test period? Keep in mind that the incentive phase of the model can calibrate for measurement outcomes through various incentive plan structures and amounts.
2. Benchmark measures without any statistical tests are proposed for purposes of determining a performance failure. Explain why this simple approach cannot serve as a measurement tool at least for the duration of the six-month trial pilot test period? Keep in mind that the incentive phase of the model can incorporate information on underlying data values and distributions.
Minimum Sample Sizes
1. A minimum sample size of thirty, aggregated in up to three-month time periods, is proposed. Explain why this standard textbook statistical proposal cannot serve as a minimum sample size rule at least for the duration of the six-month trial test period? Keep in mind that the test would still be performed using whatever sample size is achieved at the end of three months.
Alpha Levels/Critical Values
Ten percent Type I alpha level for parity tests is proposed. Explain why this standard textbook statistical proposal cannot serve as an alpha level/critical value rule at least for the duration of the six-month trial pilot test period? Again, keep in mind that the penalty phase of the plan can calibrate the size of the payments as a function of the critical values.
Appendix B
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Appendix C
