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The marketing manager for a nationally franchised lawn service company would lik

ID: 3233204 • Letter: T

Question

The marketing manager for a nationally franchised lawn service company would like to study the characteristics that differentiate 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 Referring to Scenario 14-19, which of the following is the correct interpretation for the income slope coefficient? Holding constant the effect of lawn size, the estimated natural logarithm of the odds ratio of purchasing a lawn service increases by 0.0004 for each increase of one thousand dollars in family income. Holding constant the effect of lawn size, the estimated natural number of the lawn service purchasing increases by 0.0004 for each increase of one thousand dollars in family income. Holding constant the effect of lawn size, the estimated number of lawn service purchased increases by 0.0004 for each increase of one thousand dollars in family income. Holding constant the effect of lawn size, the estimated probability of purchasing a lawn service increases by 0.0004 for each increase of one thousand dollars in family income.

Explanation / Answer

In this context, there are one dependent variable and two independent variables

from the given output,

suitable interpretation is second option

holding law size as constant the average prediction is possible of 0.0304 for 1 thousand change of independent varaible