SCENARIO 14-19
the Marketing Manager for a Nationally Franchised Lawn

Multiple Choice

SCENARIO 14-19
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 $$\begin{array}{l}\begin{array} { l r r r r } \hline { \text { Predictor } } & \text { Coefficients } & \text { SE Coef } &{ Z } & p \text {-Value } \\\hline \text { Intercept } & - 7.8562 & 3.8224 & - 2.0553 & 0.0398 \\\text { Income } & 0.0304 & 0.0133 & 2.2897 & 0.0220 \\\text { Lawn Size } & 1.2804 & 0.6971 & 1.8368 & 0.0662\end{array}\\\\\text { Deviance } \quad 25.3089\end{array}$$
-Referring to Scenario 14-19, which of the following is the correct interpretation for the Income slope coefficient?

A) Holding constant the effect of lawn size, the estimated number of lawn service purchased increases by 0.0304 for each increase of one thousand dollars in family income.
B) Holding constant the effect of lawn size, the estimated average number of lawn service purchased increases by 0.0304 for each increase of one thousand dollars in family
Income.
C) 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.
D) 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.