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V. DETERMINING CHILD CARE MARKET RATES Child Care Market Rate Survey 2023 Page | 34 Table 21. Countywide Imputed Rates for All Age Categories for Homes (County C Example): 2023. Rate Star Rating One-Star Two-Star Three-Star Four-Star Five-Star Number of Children=19 0 6 0 0 5 County 75th Percentile Rate --- $628.00 --- --- $585.00 State Rate $693.00 $639.00 $650.00 $693.00 $715.00 Type Mean Difference 79% 79% 79% 79% 79% Type Imputed Rate $548.00 $505.00 $514.00 $548.00 $565.00 Source Countywide Imputed County 75th Percentile > Countywide Imputed Countywide Imputed Countywide Imputed County 75th Percentile > Countywide Imputed Model Rate $548.00 $628.00 $514.00 $548.00 $585.00 Final Adjusted Rate $492.00 $494.00 $500.00 $511.00 $529.00 C. RELATIONSHIP BETWEEN STAR RATING AND MARKET RATES During the 2023 study, there were five counties in which 50 children were not served in centers and homes combined: Hyde Jones Madison Mitchell Polk The county imputed rates for these counties were used, the imputations being based on all the children in the state and substituting state rates produced rates very different from the rates reported in that county. The preliminary rate was always set as the maximum of the actual 75th percentile rate (if one existed) and the imputed rate. In extreme cases of missing data, further imputations were used to best approximate changes in rates. 1. Regression Analysis to Create Modeled Rates After the preliminary rates were set, a regression analysis was performed for each county in order to ensure an increase in rates with an increase in star levels, and the new rates were set as the rates determined by the regression. The regression model is based on the assumption that rates would always be directly (or positively) associated with increased star level, but that was not always the case. Tables 16 and 17 list counties where negative relationships were found in centers and homes, respectively. The negative relationships may be caused by unusually high rates at one-, two-or