TABLE 14-17
the Marketing Manager for a Nationally Franchised Lawn

question 103

Multiple Choice

TABLE 14-17
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:
Logistic Regression Table
$\begin{array}{lccccccrr} & & & & \text { Odds } & \text { 95 \% CI } \\\text {Predictor }& \text {Coef }&\text { SE Coef }&\text { Z }& \text {P} &\text { Ratio} &\text { Lower} & \text {Upper }\\\text {Constant }& -70.49 & 47.22 & -1.49 & 0.135 & & & \\\text {Income }& 0.2868 & 0.1523 & 1.88 & 0.060 & 1.33 & 0.99 & 1.80 \\\text {Lawn Size} & 1.0647 & 0.7472 & 1.42 & 0.154 & 2.90 & 0.67 & 12.54 \\\text {Attitude} & -12.744 & 9.455 & -1.35 & 0.178 & 0.00 & 0.00 & 326.06 \\\text {Teenager} & -0.200 & 1.061 & -0.19 & 0.850 & 0.82 & 0.10 & 6.56 \\\text {Age} & 1.0792 & 0.8783 & 1.23 & 0.219 & 2.94 & 0.53 & 16.45\end{array}$

Log-Likelihood = -4.890
Test that all slopes are zero: G = 31.808, DF = 5, P-Value = 0.000

Goodness-of-Fit Tests
$\begin{array}{lrrr}\text { Method } & \text { Chi-Square } & \text { DF } & \text { P } \\ \text { Pearson } & 9.313 & 24 & 0.997 \\ \text { Deviance } & 9.780 & 24 & 0.995 \\ \text { Hosmer-Lemeshow } & 0.571 & 8 & 1.000\end{array}$

-Referring to Table 14-17, which of the following is the correct interpretation for the Income slope coefficient?

• A) Holding constant the effect of the other variables, the estimated probability of purchasing a lawn service increases by 0.2868 for each increase of one thousand dollars in family income.
• B) Holding constant the effect of the other variables, the estimated number of lawn service purchased increases by 0.2868 for each increase of one thousand dollars in family income.
• C) Holding constant the effect of the other variables, the estimated average number of lawn service purchased increases by 0.2868 for each increase of one thousand dollars in family income.
• D) Holding constant the effect of the other variables, the estimated natural logarithm of the odds ratio of purchasing a lawn service increases by 0.2868 for each increase of one thousand dollars in family income.

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Capital

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Largest

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