Exhibit 17

question 4

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.For which age is the predicted effectiveness of the old and new dug is about the same?

• A)43 years.
• B)50 years.
• C)58 years.
• D)The predicted effectiveness of the new drug is higher for any age.

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Definitions:

Health Care Services

Professional medical, preventive, diagnostic, therapeutic, and support services provided by doctors, nurses, and other health professionals.

Public Assistance

Government programs designed to provide financial aid to individuals or groups who cannot support themselves, aimed at reducing poverty and providing basic needs.

GDP

Gross Domestic Product; a measure of the economic activity of a country, calculated as the total value of all goods and services produced over a specific time period.

Health Care Spending

The total amount of money spent on health care services by individuals, businesses, and governments.