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Refer to the Simmons Stores example introduced in this section. The dependent variable is coded as y = 1 if the customer used the coupon and 0 if not. Suppose that the only information available to help predict whether the customer will use the coupon is the customer's credit card status, coded as x = 1 if the customer has a Simmons credit card and x = 0 if not.

a. Write the logistic regression equation relating x to y.

b. What is the interpretation of E(y) when x = 0?

c. For the Simmons data in Table 15.11, use Minitab to compute the estimated logit.

d. Use the estimated logit computed in part (c) to compute an estimate of the probability of using the coupon for customers who do not have a Simmons credit card and an estimate of the probability of using the coupon for customers who have a Simmons credit card.

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

a. Write the logistic regression equation relating x to y.

b. What is the interpretation of E(y) when x = 0?

c. For the Simmons data in Table 15.11, use Minitab to compute the estimated logit.

d. Use the estimated logit computed in part (c) to compute an estimate of the probability of using the coupon for customers who do not have a Simmons credit card and an estimate of the probability of using the coupon for customers who have a Simmons credit card.

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

A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...

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