The marketing manager for a nationally franchised lawn service company developed a logistic regression model to predict which suburban homeowners would purchase a lawn service. The model included the following predictor variables: Income, in thousands of dollars, Lawn Size, in thousands of square feet, Attitude, attitude toward outdoor recreational activities (0 = unfavorable, 1 = favorable), Teenager, number of teenagers in the household and Age, age of the head of the homeowner. The fitted logistic regression model is

Question

The marketing manager for a nationally franchised lawn service company developed a logistic regression model to predict which suburban homeowners would purchase a lawn service. The model included the following predictor variables: Income, in thousands of dollars, Lawn Size, in thousands of square feet, Attitude, attitude toward outdoor recreational activities (0 = unfavorable, 1 = favorable), Teenager, number of teenagers in the household and Age, age of the head of the homeowner. The fitted logistic regression model is

Ln(estimated odds of purchase) = -70.49 + 0.2868 Income + 1.0647 LawnSize – 12.744 Attitude – 0.200 Teenager + 1.0792 Age

Holding other variables constant, how many times greater are the estimated odds that a 47-year old homeowner purchases a lawn service, compared to a 40-year old homeowner?

Answer 1

To determine the ratio of the estimated odds, we can subtract the coefficients for the Age variable:

1.0792 (47-year old) - 1.0792 (40-year old) = 0

Therefore, the estimated odds of a 47-year old homeowner purchasing a lawn service are the same as the estimated odds of a 40-year old homeowner purchasing a lawn service.