An Over-The-Counter Drug Manufacturer Wants to Examine the Effectiveness of a New

question 115

Multiple Choice

An over-the-counter drug manufacturer wants to examine the effectiveness of a new drug in curing an illness most commonly found in older patients. Thirteen patients are given the new drug and 13 patients are given the old drug. To avoid bias in the experiment, they are not told which drug is given to them. To check how the effectiveness depends on the age of patients, the following data have been collected. The variables are Effectiveness = the response variable measured on a scale from 0 to 100,
Age = the age of a patient (in years) ,
Drug = a dummy variable that is 1 for the new drug and 0 for the old drug,
The regression model, Effectiveness = β₀ + β₁Age + β₂Drug + β₃Age × Drug,is estimated and the following results are obtained. Which of the following is the estimated regression model for the old drug?

• A) = 47.04 + 0.34Age
• B) = 6.18 + 1.04Age
• C) = 47.04 + 0.34Age + 0.70Age × Drug
• D) = 47.04 + 0.34Age - 40.86Drug + 0.70Age × Drug

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Definitions:

Netherlands

A country located in Northwestern Europe, known for its flat landscape, canals, tulip fields, windmills and cycling routes.

Tobacco Plantations

Large agricultural estates specifically dedicated to the cultivation of tobacco as a cash crop, historically significant in the American South.

Chesapeake Region

An area in the United States surrounding the Chesapeake Bay, known for its unique cultural heritage, history, and environmental significance.

Mercantilism

An economic theory and practice prevailing in Europe from the 16th to the 18th century, promoting governmental regulation of a nation's economy for the purpose of augmenting state power at the expense of rival national powers.