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

question 248

Multiple Choice

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, which of the following is the correct interpretation for theIncome slope coefficient?

• A)Holding constant the effect of lawn size, the estimated number of lawn services purchased increases by 0.0304 for each increase of one thousand dollars in family income.
• B)Holding constant the effect of lawn size, the estimated average number of lawn services purchased increases by 0.0304 for each increase of one thousand dollars in family income.
• C)Holding constant the effect of lawn size, the estimated probability of purchasing a lawn service increases by 0.0304 for each increase of one thousand dollars in family income.
• D)Holding constant the effect of lawn size, the estimated natural logarithm of the odds ratio of purchasing a lawn service increases by 0.0304 for each increase of one thousand dollars in family income.

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Definitions:

Accurately

With precision and correctness, without errors or distortions.

Detecting

The process of discovering or identifying the presence of something, especially with the assistance of specialized techniques or equipment.

Basic Sensations

The simplest form of sensory processing, resulting from stimulating sensory receptors in the eyes, ears, skin, nose, and tongue.

Sense of Touch

One of the five senses that allows an organism to perceive and respond to tactile stimuli from the environment.