TABLE 14-19 The Marketing Manager for a Nationally Franchised Lawn Service Company

question 241

Multiple Choice

TABLE 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; 15 did not have a lawn service (code 0) and 15 had a lawn service (code 1) . Additional information available concerning these 30 home owners includes family income (Income, in thousands of dollars) , lawn size (Lawn Size, in thousands of square feet) , attitude toward outdoor recreational activities (Atitude 0 = unfavorable, 1 = favorable) , number of teenagers in the household (Teenager) , and age of the head of the household (Age) .
The Minitab output is given below:
-Referring to Table 14-19, which of the following is the correct interpretation for the Attitude slope coefficient?

• A) Holding constant the effect of the other variables, the estimated number of lawn service purchased is 12.74 lower for a home owner who has a favorable attitude toward outdoor recreational activities than one that has an unfavorable attitude.
• B) Holding constant the effect of the other variables, the estimated odds ratio of purchasing a lawn service is 12.74 lower for a home owner who has a favorable attitude toward outdoor recreational activities than one that has an unfavorable attitude.
• C) Holding constant the effect of the other variables, the estimated natural logarithm of the odds ratio of purchasing a lawn service is 12.74 lower for a home owner who has a favorable attitude toward outdoor recreational activities than one that has an unfavorable attitude.
• D) Holding constant the effect of the other variables, the estimated probability of purchasing a lawn service is 12.74 lower for a home owner who has a favorable attitude toward outdoor recreational activities than one that has an unfavorable attitude.

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Definitions:

Liens

Legal claims or holds on property as security for the payment of a debt or performance of some obligation.

Priority

The status of being more important or urgent than something else, often determining the order in which tasks or responsibilities are addressed.

Secured Transaction

Any transaction in which the payment of a debt is guaranteed, or secured, by personal property owned by the debtor or in which the debtor has a legal interest.

Collateral

Assets or property pledged as security for the repayment of a loan, subject to seizure on default.