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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 =
0 if the customer does not have a Simmons credit card
1 if the customer has a Simmons credit card
y =
0 if the customer did not use the coupon
1 if the customer used the coupon.

(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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