Chapter 15.9, Problem 45E

In Table 15.12 we provided estimates of the probability of using the coupon in the Simmons Stores catalog promotion. A different value is obtained for each combination of values for the independent variables.

1. a. Compute the odds in favor of using the coupon for a customer with annual spending of $4000 who does not have a Simmons credit card (x₁ = 4, x₂ = 0).
2. b. Use the information in Table 15.12 and part (a) to compute the odds ratio for the Simmons credit card variable x₂ = 0, holding annual spending constant at x₁ = 4.
3. c. In the text, the odds ratio for the credit card variable was computed using the information in the $2000 column of Table 15.12. Did you get the same value for the odds ratio in part (b)?