Q2. Simmons\' catalogs are expensive and Simmons would like to send them to only
ID: 3065607 • Letter: Q
Question
Q2. Simmons' catalogs are expensive and Simmons would like to send them to only thos customers who have the highest probability of making a $200 purchase using the discount coupo included in the catalog. Simmons' management thinks that annual spending at Simmons Store and whether a customer has a Simmons credit card are two variables that might be helpful in predicting whether a customer who receives the catalog will use the coupon to make a $200 purchase. Results are presented below: y ( , use of $200 coupon : O, no-use of coupon)-1.67 + 043*Spending(S 1000) + 0.88*Card(-1,0) z-value (2.65) (6.09) p-value [0.013] (0.001] G-13.628, d2, p-value 0.001 (8.09) [0.000] a. What is the name of the model in which the response variable takes on a value of 1 or 0? b. How do you obtain the degrees of freedom of 2? Explain.Explanation / Answer
a) Ans: The name of the model in which the response variable takes on a value of 1 or 0 is known as logistic regression.
b) The total number of df is n-1, where n is the total data point.
Here the df=2 is the number of the independent variable in the model. The independent variables are spending and Card.
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