Exhibit 93. Simmon owns and operates a naticnal chain of departmet tores Semmo a to nd penve sle catalog witha" ef copee oly to those cuitomm who have a nfficimtly high probability of ung te oup Managet da the the deo sho depend oe sl ul pding Simmons (S1000) and 1f the customer has a Simmons credit card O otherwise Asuming 1f the customer uses the coupon lo otherwise and B-Py- 1) the logitie repression was ra in Data Mining and the following atput fr the lopt. In Mottaned Coefficients Predictor Eatimate Intercept 2.50 033 2.10 Refer to Exhibit 9.3. What is the estimated logistic function In 1-6 )-2.50+0.35xi+2.1x2 Ob B - -2.50 + 0.35x +2.1 1-6 (<2.50+0.1 1+e

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Exhibit 9-3. Simunons owna and operates a national chain of departaent stores. Simmons wati to send ao spenve sales catlog with a"0 off coupon onhy
to those cuitomen who have a mfficimntly high probability of unng the coupon. Managtet dila the the decson should depend ce sl-al spendng at
Simmona (S1000) and
1f the customer has a Simmons credit card
O otherwise
Aanaming
1if the customer uses the coupon
o Otherwise
nd
B= Ply = 1) the logistic regression wan rum in Data Mining and the following ostput for the lopit In(-
1wobtaned
1-6
Coefficients
Predictor Estimate
2.50
Intercept
x1
0.33
x2
2.10
Refer to Exhibit 9.3. What is the estimated logistic fanction
In
)= - 2.,50+0.35×+2.1x2
= -2.50+0.35x+2.1x
1-6
<<2.50+0.33+2.)
1+e
0.33x2.
1+e
Transcribed Image Text:Exhibit 9-3. Simunons owna and operates a national chain of departaent stores. Simmons wati to send ao spenve sales catlog with a"0 off coupon onhy to those cuitomen who have a mfficimntly high probability of unng the coupon. Managtet dila the the decson should depend ce sl-al spendng at Simmona (S1000) and 1f the customer has a Simmons credit card O otherwise Aanaming 1if the customer uses the coupon o Otherwise nd B= Ply = 1) the logistic regression wan rum in Data Mining and the following ostput for the lopit In(- 1wobtaned 1-6 Coefficients Predictor Estimate 2.50 Intercept x1 0.33 x2 2.10 Refer to Exhibit 9.3. What is the estimated logistic fanction In )= - 2.,50+0.35×+2.1x2 = -2.50+0.35x+2.1x 1-6 <<2.50+0.33+2.) 1+e 0.33x2. 1+e
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