Project: Modeling with Logistic Regression
The marketing department for a retail company was about to embark on a periodic campaign to convince existing customers to apply for one of the company’s discount shopping advantage card with a fixed annual fee. The major decision facing the marketing department concerns which type of customers should be targeted for the campaign. The information from a random sample of 32 current customers who had been invited to apply of shopping card in the past was recorded, and three of the variables that are to be used to assist the marketing department in the analysis are: Shopping card status (1=Yes “have the discount shopping card”, 0=No “don’t have the discount shopping card”), Annual spending in thousands of dollars, Possession of credit card (1=Yes “have credit card”, 0=No “don’t have credit card”).
Use the data above to evaluate the significance of the two predictor variables selected for predicting the willingness of the customers to obtain the discount shopping advantage card. Answer the following questions.