The manager is concerned about the attrition rate at her gym. She would like to identify the
Question:
The manager is concerned about the attrition rate at her gym. She would like to identify the profile of loyal members who retain the membership for at least one year. The accompanying data file contains information on whether the member has been loyal (Loyal = 1 if the member stayed at the gym for at least one year,
0 otherwise). Also included are the member’s age and income (in $1,000s) and whether he/she joined on a single or a family plan.
a. Estimate the logistic regression model using Loyal as the response variable and Age, Income, and Single (equals 1 if on a single plan, 0 otherwise) as the predictor variables.
b. Predict the probability of being loyal for a 40- and a 60-year-old member with income of $80,000 and on a single plan.
c. Predict the corresponding probabilities for a member on a family plan.
Loyal | Age | Income | Plan |
0 | 39 | 134 | Single |
1 | 57 | 120 | Family |
1 | 72 | 75 | Single |
1 | 71 | 143 | Single |
1 | 25 | 75 | Single |
1 | 44 | 149 | Single |
0 | 21 | 113 | Family |
1 | 26 | 87 | Family |
0 | 63 | 44 | Family |
0 | 37 | 44 | Single |
1 | 65 | 138 | Family |
0 | 43 | 138 | Family |
0 | 66 | 96 | Family |
1 | 21 | 91 | Family |
0 | 70 | 59 | Single |
0 | 39 | 31 | Single |
0 | 39 | 50 | Single |
0 | 43 | 85 | Family |
0 | 65 | 53 | Single |
1 | 73 | 119 | Single |
1 | 71 | 63 | Family |
0 | 72 | 51 | Single |
1 | 53 | 108 | Single |
0 | 60 | 46 | Family |
1 | 60 | 119 | Single |
0 | 21 | 41 | Single |
1 | 46 | 100 | Family |
0 | 21 | 55 | Family |
0 | 27 | 127 | Single |
Step by Step Answer:
Business Analytics
ISBN: 9781265897109
2nd Edition
Authors: Sanjiv Jaggia, Alison Kelly, Kevin Lertwachara, Leida Chen