SCENARIO 18-12 The Marketing Manager for a Nationally Franchised Lawn Service Company

Multiple Choice

SCENARIO 18-12
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; 15 did not have a lawn service (code 0) and 15 had a lawn service (code 1) . Additional information available concerning these 30 home owners includes family income (Income, in thousands of dollars) , lawn size (Lawn Size, in thousands of square feet) , attitude toward outdoor recreational activities (Attitude 0 = unfavorable, 1 = favorable) , number of teenagers in the household (Teenager) , and age of the head of the household (Age) . The Minitab output is given below:

-Referring to Scenario 18-12, which of the following is the correct interpretation for the Income slope coefficient?

A) Holding constant the effect of the other variables,the estimated number of lawn service purchased increases by 0.2868 for each increase of one thousand dollars in family income.
B) Holding constant the effect of the other variables,the estimated average number of lawn service purchased increases by 0.2868 for each increase of one thousand dollars in family income.
C) Holding constant the effect of the other variables,the estimated probability of purchasing a lawn service increases by 0.2868 for each increase of one thousand dollars in family income.
D) Holding constant the effect of the other variables,the estimated natural logarithm of the odds ratio of purchasing a lawn service increases by 0.2868 for each increase of one thousand dollars in family income.