SCENARIO 18-12 the Marketing Manager for a Nationally Franchised Lawn

question 103

True/False

SCENARIO 18-12 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 (Attitude 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 Scenario 18-12, there is not enough evidence to conclude that LawnSize 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:

Aggregate Demand

The total demand for all goods and services within an economy at various price levels, over a specific time period.

Price Level

A measure of the average prices of goods and services in an economy at a given time.

Multiplier

The factor by which changes in spending will affect the aggregate income level of an economy; often used in the context of the Keynesian economic multiplier effect.

Crowding-Out

A concept where increased government spending leads to reduced investment in the private sector, often due to higher interest rates.