SCENARIO 13-18
a Logistic Regression Model Was Estimated in Order

question 304

Short Answer

SCENARIO 13-18
A logistic regression model was estimated in order to predict the probability that a randomly chosen university or college would be a private university using information on mean total Scholastic Aptitude Test score (SAT) at the university or college and whether the TOEFL criterion is at least 90 (Toefl90 = 1 if yes, 0 otherwise.) The dependent variable, Y, is school type (Type = 1 if private and 0 otherwise).There are 80 universities in the sample.
The PHStat output is given below:
Binary Logistic Regression $$\begin{array}{l}\begin{array} { l r r r r } \hline { \text { Predictor } } & \text { Coefficients } & \text { SE Coef } &{ Z } & p \text {-Value } \\\hline \text { Intercept } & - 3.9594 & 1.6741 & - 2.3650 & 0.0180 \\\text { SAT } & 0.0028 & 0.0011 & 2.5459 & 0.0109 \\\text { Toefl90:1 } & 0.1928 & 0.5827 & 0.3309 & 0.7407\\\text { Deviance } & 101.9826\\\end{array}\\\end{array}$$
-Referring to SCENARIO 13-18, what should be the decision ('reject' or 'do not reject') on the null hypothesis when testing whether SAT makes a significant contribution to the model in the presence of Toefl90 at a 0.05 level of significance?

---

Definitions:

Net Sales

The total revenue from sales after deducting returns, allowances for damaged or missing goods, and discounts provided to customers.

Adjusted Trial Balance

A list of all accounts and their balances after adjusting entries have been made, used to prepare financial statements.

Multiple-Step Income Statement

A multiple-step income statement is a detailed financial statement that separates operating revenues and expenses from non-operating ones, showcasing a company's net income in a clear manner.

Perpetual Inventory System

A financial recording method where sales or purchases of inventory are immediately captured through the use of computerized point-of-sale systems and software for managing enterprise assets.