A Researcher Is Interested in Predicting Whether a Company Might

question 1

Multiple Choice

A researcher is interested in predicting whether a company might attempt to buy out a competitor (score = 1) or not (score = 0) , using market share (%) as an independent variable. She establishes that the value of 'exp(B) ' is 2.56. How should she interpret this?

• A) If two companies have a market share that differs by 1 unit, then the odds of the company with the higher score attempting a takeover are 2.56 higher than for the other company.
• B) 2.56 times more companies who attempted takeovers scored highly on market share.
• C) If two companies have market share scores that differ by 1 unit, then the odds of the company with the higher score attempting a takeover are 2.56 lower than for the other company.
• D) Takeover rates are 2.56 times as high in companies with a large share of their market.

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Definitions:

Population Proportion

The proportion of a certain outcome or characteristic within an entire population.

Upper Confidence Bound

The upper limit of a confidence interval, representing the highest value that a parameter is expected to be.

Z-Value

A statistic that measures the number of standard deviations a data point is from the mean of a distribution, often used in standard score calculations.

Population Proportion

A measure that represents the fraction or percentage of members in a population that exhibit a certain attribute or characteristic.