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:

Costs of Production

The total expenses incurred in the process of producing or manufacturing goods and services, including materials, labor, and overhead.

Functionally Organized Firm

A company organized according to the functions each part of the organization performs, such as marketing, sales, and production.

Divisions' Performance

The assessment of how different segments or departments of a company are executing their functions and contributing to overall success.

Pay to Performance

A compensation strategy where an employee's pay is based directly on their performance outcomes or achievements.