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 |
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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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