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. New Drug: Old Drug: Patient Age 19 23 67 56 45 37 27 47 29 59 51 63 28 Effectiveness 34 15 80 59 47 54 26 53 41 77 67 79 22 Patient Age 21 28 33 33 38 43 48 53 53 58 63 67 52 Effectiveness 57 57 67 36 60 54 57 70 88 79 47 52 66 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=Bo + B₁Age + ß2Drug + ß3Age x Drug, is estimated and the following results are obtained.

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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.
New Drug:
Old Drug:
Intercept
Age
Drug
Age x Drug
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=ßo + B₁Age + ß2 Drug + ß3Age × Drug, is estimated and the following results are obtained.
Multiple Choice
69.02
65.38
Patient Age 19 23 67
Effectiveness 34 15 80
21.98
71.56
Patient Age 21 28 33 33 38 43 48
Effectiveness 57 57 67 36 60 54 57
Coefficients Standard Error
46.77
0.37
-39.38
0.60
56 45 37 27 47 29 59 51 63 28
59 47 54 26 53 41 77 67 79 22
3.1491
0.0613
4.067
0.0789
Which of the following is the predicted effectiveness of the old drug for a 67-year-old patient?
53 53 58 63 67 52
70 88 79 47 52 66
t-stat
14.8519
6.0359
-9.6828
7.6046
p-value
4.97E-13
1.94E-04
1.53E-09
8.85E-08
Transcribed Image Text: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. New Drug: Old Drug: Intercept Age Drug Age x Drug 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=ßo + B₁Age + ß2 Drug + ß3Age × Drug, is estimated and the following results are obtained. Multiple Choice 69.02 65.38 Patient Age 19 23 67 Effectiveness 34 15 80 21.98 71.56 Patient Age 21 28 33 33 38 43 48 Effectiveness 57 57 67 36 60 54 57 Coefficients Standard Error 46.77 0.37 -39.38 0.60 56 45 37 27 47 29 59 51 63 28 59 47 54 26 53 41 77 67 79 22 3.1491 0.0613 4.067 0.0789 Which of the following is the predicted effectiveness of the old drug for a 67-year-old patient? 53 53 58 63 67 52 70 88 79 47 52 66 t-stat 14.8519 6.0359 -9.6828 7.6046 p-value 4.97E-13 1.94E-04 1.53E-09 8.85E-08
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