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

question 283

Short Answer

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, what should be the decision ('reject' or 'do not reject') on the null hypothesis when testing whether Attitude makes a significant contribution to the model in the presence of the other independent variables at a 0.05 level of significance?

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Definitions:

Cost-Volume-Profit Analysis

A financial analysis used to determine the effect of changes in volumes and costs on a company's profits.

Absorption Costing

An accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.

Absorption Costing

An accounting method that includes all of the manufacturing costs in the cost of a product, including direct materials, direct labor, and both variable and fixed overhead.

Profits

The financial gain made in a transaction or business operation after subtracting all expenses from revenue.