A study was conducted attempting to relate home ownership to family income. Twenty households were selected and family income was estimated along with information concerning home ownership (y = 1 indicates yes and y = 0 indicates no). The data are shown in Table E11-13.

(a) Fit a logistic regression model to the response variable y. Use a simple linear regression model as the structure for the linear predictor.

(b) Is the logistic regression model in part (a) adequate?

(c) Provide an interpretation of the parameter β₁ in this model.

Transcribed Image Text:

Home Ownership Status Household Income 1 38,000 2 51,200 3 39,600 43,400 4 1 47,700 53,000 6. 41,500 40,800 45,400 10 52,400 38,700 1 11 12 40,100 49,500 13 1 14 38,000 42,000 15 16 54,000 51,700 1 17 1 39,400 18 19 40,900 52,800 20