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

question 189

True/False

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, there is not enough evidence to conclude that the model is not a good-fitting model at a 0.05 level of significance.

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Definitions:

Nominal Rate of Interest

The rate of interest before adjustments for inflation, reflecting the market rate at which money can be borrowed.

Inflation Rate

The percentage increase in the price level of goods and services in an economy over a period of time, usually a year.

Usury Laws

Regulations governing the amount of interest that can be charged on a loan, designed to protect consumers from excessive rates.

Price Floors

A government- or group-imposed minimum price set above the equilibrium price, preventing market prices from dropping below it.