TABLE 14-11
a Logistic Regression Model Was Estimated

question 39

Multiple Choice

TABLE 14-11
A logistic regression model was estimated in order to predict the probability that a randomly chosen university or college would be a private university using information on average total Scholastic Aptitude Test score (SAT) at the university or college, the room and board expense measured in thousands of dollars (Room/Brd) , and whether the TOEFL criterion is at least 550 (Toefl550 = 1 if yes, 0 otherwise.) The dependent variable, Y, is school type (Type = 1 if private and 0 otherwise) .
Logistic Regression Table
$\begin{array}{lrrrrrrr} & & & && \text { Odds } & \text { 95: CI } \\\text { Predictor } & {\text { Coef }} & \text { SE Coef } & Z &{\text { P }} & \text { Ratio } & \text { Lower } & \text { Upper } \\\text { Constant } &-27.118&6 .696& -4.05 & 0.000 & & & \\\text { SAT } & 0.015 & 0.004666 & 3.17 & 0.002 & 1.01 & 1.01 & 1.02 \\\text { Toefl550 } & -0.390 & 0.9538 & -0.41 & 0.682 & 0.68 & 0.10 & 4.39 \\\text { Room/Brd } & 2.078 & 0.5076 & 4.09 & 0.000 & 7.99 & 2.95 & 21.60\end{array}$

Log-Likelihood = -21.883
Test that all slopes are zero: G = 62.083, DF = 3, P-Value = 0.000
Goodness-of-Fit Tests

$\begin{array}{lrcr}\text { Method } & \text { Chi-Square } & \text { DF } & \text { P } \\ \text { Pearson } & 143.551 & 76 & 0.000 \\ \text { Deviance } & 43.767 & 76 & 0.999 \\ \text { Hosmer-Lemeshow } & 15.731 & 8 & 0.046\end{array}$
-Referring to Table 14-11, which of the following is the correct interpretation for the SAT slope coefficient?

---

Definitions:

Rate of Inflation

The rise in the average cost of goods and services across an economy over a specific period.

Recessions

Periods of economic downturn when output and employment are falling, typically defined as two consecutive quarters of declining gross domestic product.

Consumer Price Index

An index that calculates the overall average price of a range of consumer goods and services, which includes transportation, food, and healthcare provisions.

Overstate

To overstate means to describe or value something in a way that is excessively high or inflated beyond its true worth.