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

question 296

Essay

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 and using both Model 1 and Model 2,what is the critical value of the test statistic for testing whether the independent variables that are not significant individually are also not significant as a group in explaining the variation in the dependent variable at a 5% level of significance?

---

Definitions:

Publicly Traded

A designation for companies whose shares are bought and sold on the open market through a stock exchange, allowing for broad public investment.

Preferred Stock

A class of ownership in a corporation with a higher claim on assets and earnings than common stock, usually with dividend payments that are prioritized over common stock dividends.

Common Stock

Shares that represent ownership in a corporation, usually giving holders voting rights and a share in the company's profits.

Preferred Stock

A type of share in a corporation that gives the owner a greater entitlement to the firm's earnings and assets than holders of common stock.