Exhibit 17

question 83

Multiple Choice

Exhibit 17.5.An over-the-counter drug manufacturer wants to examine the effectiveness of a new drug in curing an illness most commonly 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 has been collected. Assuming the variables: Effectiveness = the response variable measured on a scale from 0 to 100,
Age = the age of a patient (in years) ,
Drug = a binary variable with 1 for the new drug,and 0 for the old drug,the regression model,
Effectiveness = β₀ + β₁Age + β₂Drug + β₃Age × Drug,is considered,and the following Excel results are available: Refer to Exhibit 17.5.What 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

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Definitions:

Brand Equity

The value and strength of a brand in the marketplace, often reflected in consumer recognition, preference, and loyalty.

Functional Benefits

are the practical or utilitarian advantages that a product or service offers to its users.

Consumer-Brand Connection

The relationship and emotional bond that develops between consumers and a brand, influencing loyalty and purchasing behavior.

Brand Equity

The value and strength of a brand that decides its worth, based on the consumer's perceptions of the brand's importance and identity.