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

question 133

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:
-Referring to Scenario 14-19, which of the following is the correct interpretation for the Income slope coefficient?

• A)Holding constant the effect of lawn size, the estimated number of lawn services purchased increases by 0.0304 for each increase of one thousand dollars in family Income.
• B)Holding constant the effect of lawn size, the estimated average number of lawn services purchased increases by 0.0304 for each increase of one thousand dollars in Family income.
• C)Holding constant the effect of lawn size, the estimated probability of purchasing a lawn service increases by 0.0304 for each increase of one thousand dollars in family Income.
• D)Holding constant the effect of lawn size, the estimated natural logarithm of the odds ratio of purchasing a lawn service increases by 0.0304 for each increase of one Thousand dollars in family income.

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Definitions:

Lower Premiums

Reduced costs for insurance coverage, often a result of decreased risk, loyalty discounts, or efficient company operations.

Profit-Sharing Plans

Compensation schemes where employees receive a portion of the company's profits, in addition to their regular salaries.

Salary Contributions

Payments made by employees or employers towards retirement plans, benefits, or other financial obligations based on salary percentages.

Employer Contributions

Payments made by an employer into a benefits plan, pension, or savings account on behalf of their employees.