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

question 260

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 should be the decision ('reject' or 'do not reject')on the null hypothesis when testing whether Teenager makes a significant contribution to the model in the presence of the other independent variables at a 0.05 level of significance?

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Definitions:

Minimum Price

The lowest price at which a product can be sold, often regulated by law to cover costs and protect producers or consumers.

Marginal-revenue Curve

A graphical representation that shows how marginal revenue varies as the quantity of output is changed.

Market Demand

The total quantity of a good or service that consumers are willing and able to purchase at various prices during a specific time period.

Elastic

Describes a situation where the demand or supply of a good or service changes significantly in response to price changes.