SCENARIO 17-12 The Marketing Manager for a Nationally Franchised Lawn Service Company

SCENARIO 17-12
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 (Atitude 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 17-12, 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.

Correct Answer:

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