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

question 265

Multiple Choice

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, 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:

Perpetual Inventory

A system of inventory management where updates are made continuously as inventory items are bought and sold.

Defective Merchandise

Defective merchandise refers to products that are damaged or fail to meet quality standards or specifications at the time of sale.

Gross Profit

The financial measure calculated by deducting the cost of goods sold from total sales revenue.

Selling Expenses

Costs associated with the marketing and distribution of a product, including advertising, sales staff salaries, and shipping costs.