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Exhibit 9-3. Simmons owns and operates a national chain of department stores. Simmons wants to send an expensive sales catalog with a 30% off coupon
Exhibit 9-3. Simmons owns and operates a national chain of department stores. Simmons wants to send an expensive sales catalog with a 30% off coupon only to those customers who have a sufficiently high probability of using the coupon. Management thinks that the decision should depend on xl= annual spending at Simmons ($1000) and 1 if the customer has a Simmons credit card O otherwise Assuming 1 if the customer uses the coupon y= 0 Otherwise and, = Ply = 1) the logistic regression was run in Data Mining and the following output for the logit, In- 1-P -), was obtained: Coefficients Predictor Estimate Intercept -2.50 X1 0.33 X2 2.10 Refer to Exhibit 9.3. What is the predicted probability of using the coupon by a customer who spends $3000 annually and does not have a Simmons credit card? a. 0.2105 O b. 0.1809 C. 0.1900 d. 0.2704
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