SCENARIO 18-12
the Marketing Manager for a Nationally Franchised Lawn $\beta$

question 38

True/False

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 18-10 Model 1,the null hypothesis
H₀ : $\beta$ ₁ = $\beta$ ₂ = $\beta$ ₃ = $\beta$ ₄ = $\beta$ ₅ = $\beta$ ₆ = 0 implies that the number of weeks a worker is unemployed due to a layoff is not affected by some of the explanatory variables.

---

Definitions:

Sarbanes-Oxley Act

Legislation that places an affirmative duty on the directors of publicly-traded corporations to monitor whether they are conforming to all legal requirements.

Duty of Care

A legal obligation to adhere to a standard of reasonable care while performing acts that could foreseeably harm others.

Negligent Credentialing

A legal theory that holds employers or institutions liable for failing to verify the qualifications or competencies of a professional they hire.

Ostensible Authority

The appearance or implication of authority given to an agent by the actions or statements of the principal, leading third parties to believe the agent has such authority.