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

True/False

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, the null hypothesis that the model is a good-fitting
model cannot be rejected when allowing for a 5% probability of making a type I error.