To study the effectiveness of a price discount coupon on a six pack of a soft drink, a person collected the data shown in table below. A sample of 5,500 consumers was randomly assigned to the eleven discount categories, 500 per category. The response variable is whether or not consumers redeemed the coupon within one month.

a) See if the logit model fits the data, treating the redemption rate as the dependent variable and price discount as the explanatory variable.

b) What is the predicted redemption rate if the price discount was 17 cents?

c) Estimate the price discount for which 70 percent of the coupons will be redeemed.

Price Discount 5 7 9 11 13 15 17 19 21 23 25

Sample Size 500 500 500 500 500 500 500 500 500 500 500

No. of Coupons redeemed 100 122 147 176 211 244 277 310 343 372 391