SCENARIO 18-12 The Marketing Manager for a Nationally Franchised Lawn Service Company

question 292

Short Answer

SCENARIO 18-12
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:

-Referring to Scenario 18-11, what is the p-value of the test statistic when testing whether SAT makes a significant contribution to the model in the presence of the other independent variables?

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Definitions:

Resources

Assets, materials, or other inputs necessary for an organization to produce goods or services and operate effectively.

Expenses

Outflow of money to another person or company to pay for an item or service, or for a category within the income statement.

Costs

The total amount of money required for the production of goods or services, including materials, labor, and overhead expenses.

Prime Costs

The direct costs of manufacturing, including direct labor and materials.