Question 12 What is the predicted probability of retention for an online banker in region 12 who generated $100 of profit for the bank last year ? (write in 4 decimals, such as 0.2351) Question 13 What is the predicted probability of retention for an otherwise identical banker who does not use online banking? (write in 4 decimals, such as 0.2351) Question 14 What is the difference in predicted probabilities of retention between the online banker and the offline banker ? (write in 4 decimals, such as 0.2351)

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Question 12
What is the predicted probability of retention for an online banker in region 12 who generated
$100 of profit for the bank last year ? (write in 4 decimals, such as 0.2351)
Question 13
What is the predicted probability of retention for an otherwise identical banker
who does not use online banking? (write in 4 decimals, such as 0.2351)
Question 14
What is the difference in predicted probabilities of retention between the online banker and the
offline banker ? (write in 4 decimals, such as 0.2351)
Transcribed Image Text:Question 12 What is the predicted probability of retention for an online banker in region 12 who generated $100 of profit for the bank last year ? (write in 4 decimals, such as 0.2351) Question 13 What is the predicted probability of retention for an otherwise identical banker who does not use online banking? (write in 4 decimals, such as 0.2351) Question 14 What is the difference in predicted probabilities of retention between the online banker and the offline banker ? (write in 4 decimals, such as 0.2351)
Refer to the Pilgrim Bank model of retention. For this problem, use all digits in the table but round
your final answers to four decimal places.
Dependent Variable: RETENTION
Method: ML - Binary Probit (Quadratic hill climbing)
Date: 12/04/03 Time: 13:28
Sample: 1 31634
Included observations: 31634
Convergence achieved after 4 iterations
Covariance matrix computed using second derivatives
Variable
Coefficient
Std. Error
z-Statistic
Prob.
0.863918
0.084442
32.93175
0.0000
0.0014
0.0000
0.0107
0.026234
0.026512
3.185012
12.20773
2.553600
0.597270
ONLINE
0.000425
0.071085
0.020711
3.48E-05
0.027837
PROFIT
REGION12
REGION13
0.034676
0.5503
0.371710
0.834419 S.D. dependent var
0.370636 Akaike info criterion
4344.909 Schwarz criterion
Mean dependent var
S.E. of regression
Sum squared resid
Log likelihood
Restr. log likelihood
LR statistic (4 df)
Probability(LR stat)
0.892096
0.893418
-14105.29 Hannan-Quinn criter.
-14197.66 Avg. log likelihood
184.7454 McFadden R-squared
0.000000
0.892519
-0.445890
0.006506
31634
Obs with Dep=D0
Obs with Dep=1
5238
Total obs
26396
Transcribed Image Text:Refer to the Pilgrim Bank model of retention. For this problem, use all digits in the table but round your final answers to four decimal places. Dependent Variable: RETENTION Method: ML - Binary Probit (Quadratic hill climbing) Date: 12/04/03 Time: 13:28 Sample: 1 31634 Included observations: 31634 Convergence achieved after 4 iterations Covariance matrix computed using second derivatives Variable Coefficient Std. Error z-Statistic Prob. 0.863918 0.084442 32.93175 0.0000 0.0014 0.0000 0.0107 0.026234 0.026512 3.185012 12.20773 2.553600 0.597270 ONLINE 0.000425 0.071085 0.020711 3.48E-05 0.027837 PROFIT REGION12 REGION13 0.034676 0.5503 0.371710 0.834419 S.D. dependent var 0.370636 Akaike info criterion 4344.909 Schwarz criterion Mean dependent var S.E. of regression Sum squared resid Log likelihood Restr. log likelihood LR statistic (4 df) Probability(LR stat) 0.892096 0.893418 -14105.29 Hannan-Quinn criter. -14197.66 Avg. log likelihood 184.7454 McFadden R-squared 0.000000 0.892519 -0.445890 0.006506 31634 Obs with Dep=D0 Obs with Dep=1 5238 Total obs 26396
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