Question

For the following logistic regression model, the predictor variable “age” is a quantitative variable.

Is there a large difference in the predicted probability of churn when comparing 30-year-old and 40-year-old customers?

5-0.2*Age Predicted probability of churn -

Yes; the difference of the predicted probability between these age groups is larger than 0.15 (15 percentage points)

No; the difference of the predicted probability between these age groups is less than 0.15 (15 percentage points)

Answer 1

Console Terminal s age-30 > Cexp (5-0.2*age))/(1+exp (5-0.2*age)) [1] 0.2689414 > age 40 > Cexp (5-0.2*age))/(1+exp (5-0.2*age)) [11 0.04742587 >0.2689414-0.04742587 [1] 0.2215155 > #since the difference in the predicted probability churn is 22.15% We can conclude here that > #Yes; the difference of the predicted probability between these age groups is larger than 0.15 (15 percentage points)

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