Investment analysts for a large international consulting firm in Paris estimate a logit model to predict the likelihood their major clients will withdraw their account and move to a competing firm. The predictor variables are the monetary value (MV) of the present account and the rate of return (ROR) the client has enjoyed over the past 12 months.

Twenty clients are included in the study. The resulting logit model proves to be

If the probability of losing the client is greater than 30%, the consulting firm will personally visit the client's headquarters to provide reassurance. If a client has an account with a monetary value of 56 and a rate of return of 12.5%, should they schedule a visit?

Transcribed Image Text:

Z-0.69-1.33MV-0.68 ROR