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

question 187

Multiple Choice

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,which of the following is the correct interpretation for the Attitude slope coefficient?

• A)Holding constant the effect of the other variables,the estimated number of lawn services purchased is 12.74 lower for a home owner who has a favorable attitude toward outdoor recreational activities than one that has an unfavorable attitude.
• B)Holding constant the effect of the other variables,the estimated odds ratio of purchasing a lawn service is 12.74 lower for a home owner who has a favorable attitude toward outdoor recreational activities than one that has an unfavorable attitude.
• C)Holding constant the effect of the other variables,the estimated natural logarithm of the odds ratio of purchasing a lawn service is 12.74 lower for a home owner who has a favorable attitude toward outdoor recreational activities than one that has an unfavorable attitude.
• D)Holding constant the effect of the other variables,the estimated probability of purchasing a lawn service is 12.74 lower for a home owner who has a favorable attitude toward outdoor recreational activities than one that has an unfavorable attitude.

---

Definitions:

Pure Monopoly

A market structure where a single firm controls the entire market for a product or service, with no close substitutes and significant barriers to entry.

Allocatively Inefficient

A situation where resources are not distributed in a way that maximizes the benefits to society, often leading to a loss of economic welfare.

Marginal Benefit

The additional satisfaction or utility gained from receiving or consuming one more unit of a good or service.

Marginal Cost

The cost of producing one additional unit of a product or service, a key concept in economic theory for decision-making and pricing.