Suppose a Company Is Interested in Understanding the Effect of Age

question 82

Multiple Choice

Suppose a company is interested in understanding the effect of age and sex on the likelihood a customer will purchase a new product.The data analyst intends to run a logistic regression on her data.Which of the following variable(s) will the analyst need to code as 0 or 1 prior to performing the logistic regression analysis?

• A)age and gender
• B)age and purchase status
• C)age
• D)purchase status
• E)sex and purchase status Gender is no longer considered dichotomous

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Definitions:

Quantity Demanded

The entire quantity of a product or service that buyers are prepared and have the capacity to buy at a given price point.

Midpoint Method

A formula used to calculate elasticity between two points on a demand curve, focusing on the average values to minimize bias.

Price Elasticity

How significantly the need for a good is affected by shifts in its price point.

Consumption

The use of goods and services by households.