TABLE 17-12 The Marketing Manager for a Nationally Franchised Lawn Service Company

question 47

Short Answer

TABLE 17-12
The marketing manager for a nationally franchised lawn service company would like to study the characteristics that differentiate home owners who do and do not have a lawn service.A random sample of 30 home owners located in a suburban area near a large city was selected; 15 did not have a lawn service (code 0)and 15 had a lawn service (code 1).Additional information available concerning these 30 home owners includes family income (Income,in thousands of dollars),lawn size (Lawn Size,in thousands of square feet),attitude toward outdoor recreational activities (Attitude 0 = unfavorable,1 = favorable),number of teenagers in the household (Teenager),and age of the head of the household (Age).
The Minitab output is given below:
-Referring to Table 17-12,what is the estimated probability that a 48-year-old home owner with a family income of $100,000,a lawn size of 5,000 square feet,a positive attitude toward outdoor recreation,and two teenagers in the household will purchase a lawn service?

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Definitions:

Returns To Scale

The rate at which production output increases as a result of a proportional increase in all input factors.

Marginal Products

The additional output that is produced by employing one more unit of a particular input while holding the quantities of all other inputs constant.

Exponents

Mathematical notations indicating the number of times a base number is multiplied by itself.

Production Function

A mathematical representation that describes the relationship between inputs used in production and the output achieved.