Question
The table provides estimates of the probability of using the coupon in the Simmons Stores catalog promotion. A different value is obtained for each combination
The table provides estimates of the probability of using the coupon in the Simmons Stores catalog promotion. A different value is obtained for each combination of values for the independent variables.
Annual Spending | ||||||||
---|---|---|---|---|---|---|---|---|
$1,000 | $2,000 | $3,000 | $4,000 | $5,000 | $6,000 | $7,000 | ||
Credit Card | Yes | 0.3307 | 0.4102 | 0.4948 | 0.5796 | 0.6599 | 0.732 | 0.7936 |
No | 0.1414 | 0.1881 | 0.246 | 0.3148 | 0.3927 | 0.4765 | 0.5617 |
These values were obtained from a logistic regression equation where
x1 | = | annual spending at Simmons Stores ($1,000s) | |||
x2 | = |
| |||
y | = |
|
(a)Compute the odds in favor of using the coupon for a customer with annual spending of $5,000who does not have a Simmons credit card
(x1=5,x2= 0).
(b)Use the information in the table and in part (a) to compute the odds ratio for the Simmons credit card variable
x2= 0,
holding annual spending constant at
x1=5.
(c)The odds ratio for the Simmons credit card variable computed using the information in the $2,000 column of the table was 3.00. Did you get the same value for the odds ratio in part (b)?
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