Part B Logistic Regression (50 Marks): A carefully controlled experiment was conducted to study t...
Part B Logistic Regression (50 Marks): A carefully controlled experiment was conducted to study the effect of the size of the deposit level on the likelihood that a returnable one-liter soft-drink bottle will be returned. A bottle return was scored 1 and no return was scored O. The data to follow show the number of bottles that were returned (Y) out of 500 sold (no, at each of six deposit levels (Xt in cents): 30 500 449 10 Deposit Level X Number sold ni Number Returned Y 20 500 296 25 500 406 500 500 500 72 103 170 An analyst believes that logistic regression is appropriote for studying the relation between size of deposit and the probability a bottle will be returned. (5 Marks) Calculate the observed proportions. Find the maximum likelihood estimates of po and Ar. State th fitted response function. a. b. (10 Marks) in a scatter plot of the data with the estimated proportions and a second plot of the fitted (10 Marks) 5 Marks) c. Obta logistic response function from part (b). Comment on the two plots. d. Obtain exp(b,) and interpret this number. e. What is the estimated probability that a bottle will be returned when the deposit is 15 cents? (10 Marks) f. Estimate the amount for which 75% of the bottles are expected to be returned. (10 Marks)
Part B Logistic Regression (50 Marks): A carefully controlled experiment was conducted to study the effect of the size of the deposit level on the likelihood that a returnable one-liter soft-drink bottle will be returned. A bottle return was scored 1 and no return was scored O. The data to follow show the number of bottles that were returned (Y) out of 500 sold (no, at each of six deposit levels (Xt in cents): 30 500 449 10 Deposit Level X Number sold ni Number Returned Y 20 500 296 25 500 406 500 500 500 72 103 170 An analyst believes that logistic regression is appropriote for studying the relation between size of deposit and the probability a bottle will be returned. (5 Marks) Calculate the observed proportions. Find the maximum likelihood estimates of po and Ar. State th fitted response function. a. b. (10 Marks) in a scatter plot of the data with the estimated proportions and a second plot of the fitted (10 Marks) 5 Marks) c. Obta logistic response function from part (b). Comment on the two plots. d. Obtain exp(b,) and interpret this number. e. What is the estimated probability that a bottle will be returned when the deposit is 15 cents? (10 Marks) f. Estimate the amount for which 75% of the bottles are expected to be returned. (10 Marks)