Read Exercise 5.3 and recall that Figure 5.11(c) gives data concerning (1) the dependent variable Coupon, which equals 1

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Read Exercise 5 3 And Recall That Figure 5 11 C Gives Data Concerning 1 The Dependent Variable Coupon Which Equals 1 1 (72.95 KiB) Viewed 14 times

Read Exercise 5.3 and recall that Figure 5.11(c) gives data concerning (1) the dependent variable Coupon, which equals 1 if a Williams Apparel customer redeems a coupon and O otherwise; (2) the independent variable Purchases, which is last year's purchases (in hundreds of dollars) by the customer; and (3) the independent variable Card, which equals 1 if the customer has a Williams Apparel credit card and O otherwise. Figure 16.10 gives part of a JMP output of a logistic regression of the coupon redemption data. a. Evaluate the significance of each independent variable in the model. Purchases is statistically Card is statistically in the model. in the model. b-1. Identify the odds ratio estimates for Purchases and Card. (Round your answers to 4 decimal places.) Odds ratio for Purchases is Odds ratio for card is
b-2. Interpret the odds ratio estimates for Purchases and Card. For each additional $100 spent by a customer (holding PlatProfile fixed), the odds of the person redeeming the coupon A Williams credit card holder is times more likely have a Williams credit card (assuming both customers Purchases are the same). the coupon than a customer who does not by about %
c. Interpret the confusion matrix. (Round your answers to 4 decimal places.) Misclassification rate of redeemers is Misclassification rate of non-redeemers is Overall misclassification rate is d. Estimate the probability that a customer who spent $4,397 last year and has a Williams credit card will redeem the coupon. (Round your answer to 4 decimal places.) Probability e. Estimate the probability that a customer who spent $5,248 last year and does not have a Williams credit card will redeem the coupon. (Round your answer to 4 decimal places.) Probability
(a) Mortgage default tree No 0.10 0 1 1 1 1 0 0 0 0 0 1 1 1 0 1 0 (c) The coupon redemption data os CoupRedemp Coupon Purchases Card 0 10.52 0 0 14.89 15.75 0 1 0 1 1 0 0 1 0 0 0 1 1 1 1 0 1 1 0 0 0 Household Income > $50,000? No On Job >5 yr? 0 29.27 48.15 51.40 29.89 21.23 17.55 46.61 28.01 15.97 50.10 51.62 27.48 4.95 43.25 35.04 28.94 53.67 13.24 51.54 42.05 29.71 39.24 58.38 23.75 23.89 50.94 36.37 34.40 38.01 55.87 21.46 40.75 46.52 34.93 31.97 42.28 26.28 0.05 0 1 1 1 0 1 0 1 0 0 0 1 0 1 0 1 1 1 1 0 1 1 0 0 1 0 0 0 1 1 1 Yes No 1 0 1 1 0 0 0 0 Yes Debt >$15,000? 0.01 0 1 0.04 Yes Card(1) Purchases> 36.37 Count G^2 LogWorth 20 20.016097 16007719 Level Rate 0.2000 0.2167 0.8000 0.7833 G^2 Count 12 0 Level Rate Prob Count 0.0000 0.0397 0 10000 0.9603 0 12 (b) Second heart attack tree Prob Count 4 16 Systolic Blood Pressure <91? Count Yes .70 (d) JMP output of a classification tree for the coupon redemption data (for Exercise 5.3) 0 1 RSquare 0.644 N 40 Purchases<36.37 All Rows 0.5500 0.5500 0.4500 0.4500 Count G^2 LogWorth 40 55.051105 5.5715641 Level Rate Prob Count G^2 8 11.090355 Level Rate Level Rate Prob Count 0.5000 0.5019 0 1 0.5000 0.4981 Yes .02 4 4 Number of Splits 22 18 Count No Age <62.5? Yes .50 Purchases>=42.28 Sinus Tachycardia? No Card(0) Count G^2 LogWorth 20 13.003319 0.9797146 Level Rate Prob Count 0 0.9000 0.8833 0.1000 0.1167 1 G^2 5 6.7301167 Level Rate Prob Count 0 0.6000 0.5972 1 0.4000 0.4028 3 0 21 18 2 No Purchases<42.28 .11 Count G^2 15 0 Level Rate Prob Count 10000 0.9740 15 0.0000 0.0260 0