This assignment has two parts. Please include a write up explanation as well as an excel file with your work.
Q1. Evaluating a Clinical Trial Part 2 The dataset HIVdata.xlsx contains data from a clinical trial involve HIV medications. 240 patients who were diagnosed as HIV positive were divided into 3 groups. Group 1 received a placebo medication, group 2 received a single HIV medication (drug 1), and while group 3 received a combination of two drugs (drugs 1 and 2). The trial began in month 0. At months 0 and 10, each patient's CD4 count was recorded (https://www.aids.gov/hiv-aids-basics/just-diagnosed-with-hiv-aids/understand-your-test-results/cd4- count/).
(a) Compute the average and standard deviation of the CD4 count for each group in month 0. Do you see any evidence that patients in the two treatment groups differed significantly from those in the control group in terms of their initial health status (CD4 counts)?
(b) Use a simple linear regression to compare the change in CD4 counts between month 0 and 10 for patients in groups 1 and 2 (ignoring those in group 3). (Hint: This regression should have the change in CD4 count as the "Y" variable, a dummy/indicator for being in group 2 as the single "X" variable, and should include 160 observations). What do you find?
(c) Next, using a simple linear regression to compare the change in CD4 counts for patients in groups 1 and 3 (ignoring those in group 2). What do you find? What, if anything, can you conclude by comparing the results of parts b) and c)?
(d) Finally, run a regression of the change in CD4 counts on two dummy variables, one for being in group 2 and one for being in group 3. (Hint: This regression should include 240 observations). How do the results compare to what you found in parts b) and c)?
Q2. Computing Price Elasticities (and optimal prices) Using the data posted on the class website (rfj_data.xls) run three simple regressions of the following type
Qt = β0 + β1pt + ut
for each of the three brands in the data (Tropicana, Minute Maid and Private label). (a) Using the regression results compute own price elasticities for each brand. Recall (from GBA 461, I hope) that the elasticity is calculated as follows: ε = ∂Qp/∂pQ.
Attachment:- Data.rar