lease give full solution 1. Exhibit 9-3. Simmons owns and operates a national chain of department stores. Simmons wants to send an expensive sales catalog with a “30% off” coupon only to those customers who have a sufficiently high probability of using the coupon. Management thinks that the decision should depend on x1= annual spending at Simmons ($1000) and Assuming and, the logistic regression was run in Data Mining and the following output for the logit, , was obtained: Coefficients Predictor Estimate Intercept -2.50 x1 0.33 x2 2.10 Refer to Exhibit 9.3. What is the predicted probability of using the coupon by a customer who spends $3000 annually and does not have a Simmons credit card? a. 0.2105 b. 0.1809 c. 0.1900 d. 0.2704 2. The profit realized by the sales of a particular item follows a normal distribution with a mean of $0.5 million per quarter and a standard deviation of $0.1 million per quarter. What percent of the quarters can be expected to see a profit of at least $0.7 million? a. 98% b. 77% c. 50% d. 60%
Please give full solution
1.
Exhibit 9-3. Simmons owns and operates a national chain of department stores. Simmons wants to send an expensive sales catalog with a “30% off” coupon only to those customers who have a sufficiently high
Assuming
and,
the logistic regression was run in Data Mining and the following output for the logit, , was obtained:
|
Coefficients |
|
|
Predictor |
Estimate |
|
Intercept |
-2.50 |
|
x1 |
0.33 |
|
x2 |
2.10 |
Refer to Exhibit 9.3. What is the predicted probability of using the coupon by a customer who spends $3000 annually and does not have a Simmons credit card?
| a. |
0.2105 |
|
| b. |
0.1809 |
|
| c. |
0.1900 |
|
| d. |
0.2704 |
2.
The profit realized by the sales of a particular item follows a
| a. |
98% |
|
| b. |
77% |
|
| c. |
50% |
|
| d. |
60% |
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