SCENARIO 14-19 The Marketing Manager for a Nationally Franchised Lawn Service Company

question 87

Multiple Choice

SCENARIO 14-19
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; 11 did not have a lawn service (code 0) and 19 had a lawn service (code 1) . Additional information available concerning these 30 home owners includes family income (Income, in thousands of dollars) and lawn size (Lawn Size, in thousands of square feet) . The PHStat output is given below:

-Referring to Scenario 14-19, which of the following is the correct interpretation for the Income slope coefficient?

• A)Holding constant the effect of lawn size,the estimated number of lawn services purchased increases by 0.0304 for each increase of one thousand dollars in family income.
• B)Holding constant the effect of lawn size,the estimated average number of lawn services purchased increases by 0.0304 for each increase of one thousand dollars in family income.
• C)Holding constant the effect of lawn size,the estimated probability of purchasing a lawn service increases by 0.0304 for each increase of one thousand dollars in family income.
• D)Holding constant the effect of lawn size,the estimated natural logarithm of the odds ratio of purchasing a lawn service increases by 0.0304 for each increase of one thousand dollars in family income.

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Definitions:

Liabilities

Financial obligations or debts owed by a business to creditors, which can be current (due within one year) or long-term.