SCENARIO 14-19
the Marketing Manager for a Nationally Franchised Lawn

question 293

Multiple Choice

SCENARIO 14-19
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 $$\begin{array}{l}\begin{array} { l r r r r } \hline { \text { Predictor } } & \text { Coefficients } & \text { SE Coef } &{ Z } & p \text {-Value } \\\hline \text { Intercept } & - 7.8562 & 3.8224 & - 2.0553 & 0.0398 \\\text { Income } & 0.0304 & 0.0133 & 2.2897 & 0.0220 \\\text { Lawn Size } & 1.2804 & 0.6971 & 1.8368 & 0.0662\end{array}\\\\\text { Deviance } \quad 25.3089\end{array}$$
-Referring to Scenario 14-19, which of the following is the correct interpretation for the Lawn Size slope coefficient?

• A) Holding constant the effect of income, the estimated number of lawn service purchased increases by 1.2804 for each increase of one thousand square feet in lawn size.
• B) Holding constant the effect of income, the estimated average number of lawn service purchased increases by 1.2804 for each increase of one thousand square feet in lawn size.
• C) Holding constant the effect of income, the estimated probability of purchasing a lawn service increases by 1.2804 for each increase of one thousand square feet in lawn size.
• D) Holding constant the effect of income, the estimated natural logarithm of the odds ratio of purchasing a lawn service increases by 1.2804 for each increase of one thousand square
• Feet in lawn size.

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Definitions:

Drive

An inner urge that motivates individuals to accomplish goals, often influenced by biological, psychological, and societal factors.

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The reason or reasons one has for acting or behaving in a particular way; in a work context, it often refers to the factors that drive employees to achieve business objectives.

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Business Knowledge

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