Concept explainers
A local supermarket manager wants to use two independent variables, customer age (in years) and whether the customer subscribes to the supermarket chain’s health/wellness e-newsletters (codes as
a. Develop a logistic regression model to predict the probability that a customer purchases the organic products, based on age and whether the customer subscribes to the supermarket chain’s health/wellness e-newsletters.
b. Explain the meaning of the regression coefficients in the model in (a).
c. Predict the probability of purchasing the organic products for a 35-year-old customer who subscribes to the submarket chain’s health/wellness e-newsletters.
d. At the 0.05 level of significance, is there evidence that a logistic regression model that uses customer age the whether the customer subscribes to the supermarket chain’s health/wellness e-newsletters to the predict the probability of purchasing the organic products is a good fitting model?
e. At the 0.05 level of significance, is there evidence that customer age and whether the customer subscribes to the supermarket chain’s health/wellness e -newsletters each make a significant contribution to the logistic model?
f. What conclusions can you reach about which variables are affecting purchase of organic foods?
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Basic Business Statistics, Student Value Edition
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