An over-the-counter drug manufacturer wants to examine the effectiveness of a ne

Question

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 = ?0 + ?1Age + ?2Drug + ?3Age Times Drug, is considered, and the following Excel results are available:

Explanation / Answer

percentage of variations in Effectiveness explained by the estimated model= R square *100 = 95.27%

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