Calculate the correlations between (a) index on cost of care per patient, (b) number of records in VistA system and the budget of the office of information.

In this problem, you will estimate the relative value of VistA for the Veterans Administration.We asked the Department of Veterans Affairs to provide us the budget of the Office of Information in the last decade (this office was recently organized and the FOIA officer had to estimate what the budget of the office would have been prior to the re-organization).

We also asked for the number of patient records in VistA database. They provided us with the following information:

Fiscal Year Budget of Office of Information Number of Records in VistA VHA Cost per Patient Index

2017 8,016,467,395 16,806,871 -4.60%
2016 5,445,998,730 14,545,559 -9.10%
2015 3,187,087,714 14,088,075 -7.30%
2014 2,171,353,392 13,673,612 -6.50%
2013 1,203,211,123 13,425,474 -8.60%
2012 999,997,062 13,273,020 -6.20%

Table 2: Investment in IT, Use of VistA and Cost per Patient Index


Calculate the correlations between (a) index on cost of care per patient, (b) number of records in VistA system and the budget of the office of information.

Provide scatter diagram showing the relationship between IT investment (budget of Office of Information) and cost of care (VHA cost per Patient Index)

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