SCENARIO 14-18 A Logistic Regression Model Was Estimated in Order to Predict

question 221

Multiple Choice

SCENARIO 14-18
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 mean total Scholastic Aptitude Test score (SAT) at the university or college and whether the TOEFL criterion is at least 90 (Toefl90 = 1 if yes, 0 otherwise.) The dependent variable, Y, is school type (Type = 1 if private and 0 otherwise) . There are 80 universities in the sample. The PHStat output is given below:

-Referring to Scenario 14-18, which of the following is the correct interpretation for the SAT slope coefficient?

• A) Holding constant the effect of Toefl90, the estimated mean value of school type increases by 0.0028 for each increase of one point in average SAT score.
• B) Holding constant the effect of Toefl90, the estimated school type increases by 0.0028 for each increase of one point in average SAT score.
• C) Holding constant the effect of Toefl90, the estimated probability of the school being a private school increases by 0.0028 for each increase of one point in mean SAT score.
• D) Holding constant the effect of Toefl90, the estimated natural logarithm of the odds ratio of the school being a private school increases by 0.0028 for each increase of one point in mean SAT score.

---

Definitions:

Premium

An additional charge for a higher level of service or quality, or the amount paid for insurance coverage.

Free Purple Seat Cushion

A promotional item or gift, specifically a seat cushion produced by the company Purple, offered at no cost to customers as part of a marketing strategy.

Allegra Allergy Medication

A brand of antihistamine used to treat symptoms of allergies, such as sneezing, itchy and runny nose, and itchy throat or eyes.

Premium

An amount paid in addition to a standard price, often for a service or product considered to be of higher quality or with added features.