Question: In a logistic regression model, we want to predict customers churn (drop-out) probability based on the following independent variables: - customer's income (nominal with three

In a logistic regression model, we want to predict customers churn (drop-out) probability based on the following independent variables:

- customer's income (nominal with three levels: low, medium, high): income

- customer's marital status ( nominal with two levels: single, married): status

- The number of years the customer has been with the company: n_years

- The number of stores where customer lives: n_stores

The below table shows the coefficients of this logistic regression model:

coefficient p-value
intercept -0.421 0.000
income_low 0.14 0.02
income_high 0.21 0.031
status_single 0.07 0.042
n_years -0.32 0.003
n_stores -0.02 0.34

  1. Which statement is true about the coefficient on n_years?

    The churn probability drops by 32% per additional year that a customer stays with the business

    The odds of churning drops by 32% per additional year that a customer stays with the business

    The odds of churning drops by 27% per additional year that a customer stays with the business

    The churn probability drops by 27% per additional year that a customer stays with the business

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