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

question 26

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 Income makes a significant contribution to the model in the presence of the other independent variables at a 0.05 level of significance?

---

Definitions:

Depreciation Schedule

A document that outlines the reduction in value of an asset over time and how it is allocated as an expense across accounting periods for tax and accounting purposes.

After-Tax Hurdle Rate

The minimum acceptable rate of return on an investment after accounting for taxes, used in capital budgeting to evaluate projects.

Non-Value-Added Activities

Processes or tasks that do not add value or contribute to the customer's requirements or the product's market worth.

Quantify

To measure or express something as a quantity or in numerical terms.