Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 x1 = annual spending at Simmons ($1000) and 1 if the customer has a Simmons credit card X = 0 otherwise 1 if the customer uses the coupon Assuming y = and, p =P(y=1), the logistic regression was run in Data Mining and 0 otherwise p the following output for the logit, In was obtained: 1 - p Coefficients Predictor Estimate Intercept -2.10 x1 0.36 x2 1.50What is the predicted probability of using the coupon by a customer who spends $2500 annually and has a Simmons credit card? O 0.4477 O 0.2314 O 0.5744 O 0.4750
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