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

question 153

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 are the degrees of freedom for the chi-square distribution when testing whether the model is a good-fitting model?

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Definitions:

Prediction Intervals

Ranges within which future values are expected to fall with a specified probability, based on a model or data.

Confidence Interval

A range of values computed from sample data that is likely to include the true parameter of the population with a specified level of confidence, often expressed as a percentage.

Linear Regression

A statistical method used to model the relationship between a dependent variable and one or more independent variables, adding complexity beyond simple linear regression.

Observations

Data collected or measured from a study or experiment on variables of interest.