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The values observed were supposed to follow a normal distribution with zero mean and a given variance. We calculated the relative contribution of each term to the total variance as indicator of the importance of the variable in the variability of pharmaceutical expenditure.
Since the calculation of ACGs considered age and gender, including all these terms in the model would make difficult the interpretation due to colinearity. Gender was not relevant in explaining cost, and we decided to exclude this term, which would have a zero parameter.