# Question: Consumer Reports conducted a taste test on 19 brands of

Consumer Reports conducted a taste test on 19 brands of boxed chocolates. The following data show the price per serving, based on the FDA serving size of 1.4 ounces, and the quality rating for the 19 chocolates tested (Consumer Reports, February 2002).

Suppose that you would like to determine whether products that cost more rate higher in quality. For the purpose of this exercise, use the following binary dependent variable:

y = 1 if the quality rating is very good or excellent and 0 if good or fair

a. Write the logistic regression equation relating x = price per serving to y.

b. Use Minitab to compute the estimated logit.

c. Use the estimated logit computed in part (b) to compute an estimate of the probability a chocolate that has a price per serving of $4.00 will have a quality rating of very good or excellent.

d. What is the estimate of the odds ratio? What is its interpretation?

Suppose that you would like to determine whether products that cost more rate higher in quality. For the purpose of this exercise, use the following binary dependent variable:

y = 1 if the quality rating is very good or excellent and 0 if good or fair

a. Write the logistic regression equation relating x = price per serving to y.

b. Use Minitab to compute the estimated logit.

c. Use the estimated logit computed in part (b) to compute an estimate of the probability a chocolate that has a price per serving of $4.00 will have a quality rating of very good or excellent.

d. What is the estimate of the odds ratio? What is its interpretation?

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