A Marketing Consultant Would Like to Analyse Whether an Advertisement

question 5

Multiple Choice

A marketing consultant would like to analyse whether an advertisement is recalled or not by a group of consumers, predicted by the number of hours of television they watch. He has received various pieces of advice from colleagues. Which should he listen to?

• A) Logistic regression is not suitable with this predictor variable.
• B) Logistic regression is not suitable as the dependent variable only has two categories.
• C) Logistic regression is not suitable as only one predictor variable is postulated.
• D) Logistic regression is perfectly acceptable for this model.

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Definitions:

Regression Equation

An equation that describes the relationship between one dependent variable and one or more independent variables, often used to predict outcomes.

Regression Line

The line drawn based on values in a regression equation. Also known as a trend line.

Line Of Best Fit

The regression line that best fits the observed scores and minimizes the error in prediction.

Scatter Plot Line

Might refer to a trend line drawn through a scatter plot to show the direction of the relationship between two variables, although "Scatter Plot Line" is not a standard term.