Answered step by step
Verified Expert Solution
Question
1 Approved Answer
In a logistic regression model, we want to predict customers churn (drop-out) probability based on the following independent variables: - - customer's income (nominal with
In a logistic regression model, we want to predict customers churn (drop-out) probability based on the following independent variables: - - customer's income (nominal with three levels: low, medium, high): income - customer's marital status ( nominal with two levels: single, married): status - The number of years the customer has been with the company: n_years - The number of stores where customer lives: n_stores The below table shows the coefficients of this logistic regression model: coefficient p-value intercept -0.421 0.000 income_low 0.14 0.02 income_high 0.21 0.031 status_single 0.07 0.042 n_years -0.32 0.003 n_stores -0.02 0.34 Questions 1-7 are related to this problem 1- which variable does not have a significant impact on churn probability? n_years status income n_stores QUESTION 2 Which statement about the coefficient on incom_low is correct? O The odds of churning for a low-income customer is 15% higher The odds of churning for a low-income customer is 15% higher than a high-income customer The odds of churning for a low-income customer is 15% higher than a medium-income customer none of the above QUESTION 3 Which statement is true about the coefficient on n_years? The churn probability drops by 32% per additional year that a customer stays with the business The odds of churning drops by 32% per additional year that a customer stays with the business The odds of churning drops by 27% per additional year that a customer stays with the business The churn probability drops by 27% per additional year that a customer stays with the business QUESTION 4 QUESTION 4 Which statement is true about the coefficient on status_single? The odds of churning is 7% higher for a single person than the odds of an average person The odds of churning is 7% higher for a single person than the odds of a married person The odds of churning is 7% lower for a single person than the odds of an average person None of the above QUESTION 5 Which income group is generally more likely to stay longer with this business? low medium o high All of them are equally likely to stay QUESTION Which marital status is more likely to stay with this business? single married Both are equally likely to stay We don't have enough information to answer this question TION 7 what is the churn probability for the following customer: income: medium marital status: married n_years: 3 n_stores: 2 0.19 0.48 0.32 0.17
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started