Question

MC Qu. 17-81 An over-the-counter drug manufacturer wants to... An over-the-couner drug manufacturer wares to examine the effecoveness of a new drug in curing an iiness most commonly found in older pavents. Thirteen patients are given the new drug and 13 pauents are given the old drug To avo which drug is given to them To check how the effectveness depends on the age of pabenns, the following data have been collected. blas in the experiment, they are not told Patient A 19 23 67 56 4537 27 47 29 59 51 63 28 New Drug atient Ag 21 28 3333 3843 48535338 63752 old Dru3 The varables are Emectiveness- the response variable measured on a scole from 0 to 100, Age" the age of ธ patient pn years Drug-a dummy vaiable that is 1 for the new drug and 0 for the old drug. The regression model Enecne ness: de + o1Age + σ2Drug + d3Age Drug·ts esti stedand the following resultsere obtained t-stat 4.9423 5.0610 10.016 7.9385 ents Standard Error Intercep 5.31E-13 4.55E-05 1.17E-09 6.71E-68 8.8665 4.0798 0.8879 0.34 Dru 0.70 Forwhich age is the predicted effecuveness of the old and new drug about the same? Mutpl๑ Choice 43 year 58 years 50 years The predicted effectiveness of the new drug ts higher for any age

Answer 1

Effectiveness-30+ ß1 * Age + 32 * Drug--Въ * Age X Drug

From the given results table we have:

Ef fectiveness = 47.04 0.34 * Age-40.86 * Drug + 0.70 * Age X Drug

Now we have to find the age at which the predicted effictiveness of the two drugs are same. That is found by solving the following equation:

47.04 + 0.34 * Age-40.86 * 0 + 0.70 * Age X 0 = 47.04 40.8610.70 Age X1 0.34 * Age

→ 47.04 + 0.34 * Age = 47.04 + 0.34 * Age-40.86 + 0.70 * Age

→ 40.86 = +0.70 * Age

→ 40.86/0.70 Age

Age58.37142857 58years

Hence the correct answer is B 58 years.

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