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

question 57

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 predicted effectiveness of the new drug for a 62-year-old patient?

• A) 21.08
• B) 64.48
• C) 68.12
• D) 70.66

---

Definitions:

Depreciate

Decrease in value over time.

Outliers

Data points that differ significantly from the majority of a data set, often indicating a measurement error or a different population.

Piecewise Function

A function in mathematics composed of several smaller functions, with each one being relevant to a specific range within the larger function's overall domain.

Comprehensive Insurance

A type of insurance that covers the repair or replacement of parts of an insured car damaged by vandalism, fire, flood, wind, earthquakes, missiles, falling objects, riots, tree sprays, and other disasters; it also covers if the car is stolen.