SCENARIO 13-19
the Marketing Manager for a Nationally Franchised Lawn

question 208

Short Answer

SCENARIO 13-19
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; 11 did not have a lawn service (code 0) and 19 had a lawn service (code 1).Additional information available
concerning these 30 home owners includes family income (Income, in thousands of dollars) and lawn size (Lawn Size, in thousands of square feet).
The PHStat output is given below:
Binary Logistic Regression $$\begin{array}{l}\begin{array} { l r r r r } \hline { \text { Predictor } } & \text { Coefficients } & \text { SE Coef } & { Z } & p \text {-Value } \\\hline \text { Intercept } & - 7.8562 & 3.8224 & - 2.0553 & 0.0398 \\\text { Income } & 0.0304 & 0.0133 & 2.2897 & 0.0220 \\\text { Lawn Size } & 1.2804 & 0.6971 & 1.8368 & 0.0662\\\text { Deviance } & 25.3089\end{array}\\\end{array}$$
-Referring to SCENARIO 13-19, what is the estimated probability that a home owner with a family income of $50,000 and a lawn size of 5,000 square feet will purchase a lawn service?

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Definitions:

Par Value

The face value of a bond or stock as stated by the issuing company, unrelated to its market value.

Market Value

The market price at which an asset or service is currently available for trading.

Inflation

The rate at which the general level of prices for goods and services rises, eroding purchasing power over time.

Bond Prices

The market price at which a bond is currently trading, influenced by interest rates, the bond's credit rating, and other market factors.