The market research department of a soft drink manufacturer is investigating the

Chapter 11, Problem 11-82

(choose chapter or problem)

The market research department of a soft drink manufacturer is investigating the effectiveness of a price discount coupon on the purchase of a two-liter beverage product. A sample of 5500 customers was given coupons for varying price discounts between 5 and 25 cents. The response variable was the number of coupons in each price discount category redeemed after one month. The data are shown below. (a) Fit a logistic regression model to the data. Use a simple linear regression model as the structure for the linear predictor. (b) Is the logistic regression model in part (a) adequate? (c) Draw a graph of the data and the fitted logistic regression model.(d) Expand the linear predictor to include a quadratic term. Is there any evidence that this quadratic term is required in the model? (e) Draw a graph of this new model on the same plot that you prepared in part (c). Does the expanded model visually provide a better fit to the data than the original model from part (a)?