SCENARIO 18-11 a Logistic Regression Model Was Estimated in Order

question 146

Multiple Choice

SCENARIO 18-11 A logistic regression model was estimated in order to predict the probability that a randomly chosen university or college would be a private university using information on mean total Scholastic Aptitude Test score (SAT) at the university or college, the room and board expense measured in thousands of dollars (Room/Brd) , and whether the TOEFL criterion is at least 550 (Toefl550 = 1 if yes, 0 otherwise.) The dependent variable, Y, is school type (Type = 1 if private and 0 otherwise) . The Minitab output is given below:
-Referring to Scenario 18-11, which of the following is the correct interpretation for the SAT slope coefficient?

• A)Holding constant the effect of the other variables, the estimated mean value of school type increases by 0.015 for each increase of one point in average SAT score.
• B)Holding constant the effect of the other variables, the estimated school type increases by 0.015 for each increase of one point in average SAT score.
• C)Holding constant the effect of the other variables, the estimated probability of the school being a private school increases by 0.015 for each increase of one point in Mean SAT score.
• D)Holding constant the effect of the other variables, the estimated natural logarithm of the odds ratio of the school being a private school increases by 0.015 for each Increase of one point in mean SAT score.

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