The market research department of a soft drink manufacturer is investigating the effectiveness of a price discount coupon on the purchase of a two-liter beverage product. A sample of 5500 customers was given coupons for varying-price discounts between 5 and 25 cents. The response variable was the number of coupons in each price discount category redeemed after one month. The data is in the picture. a. Fit a logistic regression model to the data. Use a simple linear regression model as the structure for the linear predictor. b. Does the model deviance indicate that the logistic regression model from part a is adequate?
The market research department of a soft drink manufacturer is investigating the effectiveness of a price discount coupon on the purchase of a two-liter beverage product. A sample of 5500 customers was given coupons for varying-price discounts between 5 and 25 cents. The response variable was the number of coupons in each price discount category redeemed after one month. The data is in the picture.
a. Fit a logistic regression model to the data. Use a simple linear regression model as the structure for the linear predictor.
b. Does the model deviance indicate that the logistic regression model from part a is adequate?
c. Draw a graph of the data and the fitted logistic regression model.
d. Expand the linear predictor to include a quadratic term. Is there any evidence that this quadratic term is required in the model?
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