TABLE 14-19 The Marketing Manager for a Nationally Franchised Lawn Service Company

question 256

Multiple Choice

TABLE 14-19
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; 11 did not have a lawn service (code 0) and 19 had a lawn service (code 1) .Additional information available concerning these 30 home owners includes family income (Income,in thousands of dollars) and lawn size (Lawn Size,in thousands of square feet) .
The PHStat output is given below:
-Referring to Table 14-19,which of the following is the correct interpretation for the Lawn Size slope coefficient?

• A)Holding constant the effect of income,the estimated number of lawn services purchased increases by 1.2804 for each increase of one thousand square feet in lawn size.
• B)Holding constant the effect of income,the estimated average number of lawn services purchased increases by 1.2804 for each increase of one thousand square feet in lawn size.
• C)Holding constant the effect of income,the estimated probability of purchasing a lawn service increases by 1.2804 for each increase of one thousand square feet in lawn size.
• D)Holding constant the effect of income,the estimated natural logarithm of the odds ratio of purchasing a lawn service increases by 1.2804 for each increase of one thousand square feet in lawn size.

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Definitions:

Hierarchies

Systems or organizations in which members are ranked one above the other according to status or authority.

Free Market System

An economic system based on supply and demand with minimal government intervention, where prices for goods and services are determined freely by the open market.

Cluster

A group of similar things or people positioned or occurring closely together, often used to refer to a statistical analysis method that identifies groups of similar data points.

Wants and Needs

Desires (wants) are wishes or aspirations not necessary for survival, whereas needs are essential for basic human survival.