Assume a Dependent Variable Is Coded as Y =1 If

question 10

Short Answer

Assume a dependent variable is coded as y =1 if the customer buys the shirt and 0 if the customer does not buy the shirt. The only data you have available to help predict whether the customer will buy the shirt or not buy the shirt is if they are customers of BankOne, coded
as x =1, or NOT a customer of BankOne coded as x = 0. What is the interpretation of E(y) when x = 0?

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Definitions:

Complete A Task

This means to finish or accomplish a given work or activity usually with a specific goal in mind.

Availability Heuristic

An intellectual shortcut that depends on the readily accessible examples in someone's memory upon contemplating a certain subject, notion, technique, or judgment.

Rare Events

Events that occur infrequently or have a low probability of happening within a given time frame.

Insure Themselves

The act of individuals or entities protecting themselves against financial loss through the purchase of insurance.