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A marketing research firm was engaged by an automobile manufacturer to conduct a pilot study to examine the feasibility of using logistic regression for ascertaining the likelihood that a family will purchase a new car during the next year. A random sample of 33 suburban families was selected. Data on annual family income (in thousand dollars, X1), the current age of the oldest family automobile (in years, X2) were obtained. A follow up interview conducted 12 months later was used to determine whether the family actually purchased a new car (Y = 1) or did not purchased a new car (Y = 0).
The data is stored in file new-car.sav. and attach.
A) Specify a logistic regression model for this study,
B) Estimate all the coefficients of β0, β1 and β2,
C) Obtain exp(b1) and exp(b2) and interpret these numbers,
D) What is the estimated possibility that a family with annual income of $50 thousand and an old car of 3 years will purchase a new car next year?
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