The marketing manager for a nationally franchised lawn service company would like to study the characteristics that differentiate home owners who do and do not have a lawn service. A random sample of 30 home owners located in a suburban area near a large city was selected; 11 did not have a lawn service (code 0) and 19 had a lawn service (code 1). Additional information available concerning these 30 home owners includes family income (Income, in thousands of dollars) and lawn size (Lawn Size, in thousands of square feet).

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The marketing manager for a nationally franchised lawn service company would like to
study the characteristics that differentiate home owners who do and do not have a
lawn service. A random sample of 30 home owners located in a suburban area near a
large city was selected; 11 did not have a lawn service (code 0) and 19 had a lawn
service (code 1). Additional information available concerning these 30 home owners
includes family income (Income, in thousands of dollars) and lawn size (Lawn Size, in
thousands of square feet).
The PHStat output is given below:
Binary Logistic Regression.
Predictor
Intercept
Income
Lawn Size
Deviance
Coefficients SE Coef
Z
-7.8562 3.8224
-2.0553
0.0304 0.0133 2.2897
1.2804 0.6971
1.8368
25.3089
C)
p-Value
0.0398
0.0220
0.0662
Which of the following is the correct interpretation for the Income slope coefficient?
A)
Holding constant the effect of lawn size, the estimated natural logarithm of
the odds ratio of purchasing a lawn service increases by 0.0304 for each
increase of one thousand dollars in family income.
B)
Holding constant the effect of lawn size, the estimated probability of
purchasing a lawn service increases by 0.0304 for each increase of one
thousand dollars in family income.
Holding constant the effect of lawn size, the estimated number of lawn
services purchased increases by 0.0304 for each increase of one thousand
dollars in family income.
Holding constant the effect of lawn size, the estimated average number of
D)
lawn services purchased increases by 0.0304 for each increase of one
thousand dollars in family income.
Transcribed Image Text:The marketing manager for a nationally franchised lawn service company would like to study the characteristics that differentiate home owners who do and do not have a lawn service. A random sample of 30 home owners located in a suburban area near a large city was selected; 11 did not have a lawn service (code 0) and 19 had a lawn service (code 1). Additional information available concerning these 30 home owners includes family income (Income, in thousands of dollars) and lawn size (Lawn Size, in thousands of square feet). The PHStat output is given below: Binary Logistic Regression. Predictor Intercept Income Lawn Size Deviance Coefficients SE Coef Z -7.8562 3.8224 -2.0553 0.0304 0.0133 2.2897 1.2804 0.6971 1.8368 25.3089 C) p-Value 0.0398 0.0220 0.0662 Which of the following is the correct interpretation for the Income slope coefficient? A) Holding constant the effect of lawn size, the estimated natural logarithm of the odds ratio of purchasing a lawn service increases by 0.0304 for each increase of one thousand dollars in family income. B) Holding constant the effect of lawn size, the estimated probability of purchasing a lawn service increases by 0.0304 for each increase of one thousand dollars in family income. Holding constant the effect of lawn size, the estimated number of lawn services purchased increases by 0.0304 for each increase of one thousand dollars in family income. Holding constant the effect of lawn size, the estimated average number of D) lawn services purchased increases by 0.0304 for each increase of one thousand dollars in family income.
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