Problem 2 (35%) – File: Bank. xlsx Community Bank would like to increase the number of customers who use payroll deposit. Administration is contemplating a brand new gross sales marketing campaign that may require every department supervisor to name every buyer who doesn’t at present use payoff direct deposit. As an incentive to join payroll direct deposit, every buyer contacted might be supplied free checking for 2 years. As a result of of the time and value related to the new marketing campaign, administration would like to focus their efforts on customers who’ve the highest likelihood of signing up for payroll direct deposit. Administration believes that the common month-to-month steadiness in a buyer’s checking account could also be helpful predictor of whether or not the buyer will join direct payroll deposit. To research the relationship between these two variables, Community Bank tried the new marketing campaign utilizing a pattern of 50 checking account customers who don’t at present use payroll direct deposit. The pattern knowledge present the common month-to-month checking account steadiness (in a whole bunch of dollars) and whether or not the buyer contacted signed up for payroll direct deposit (coded 1 if the buyer signed up for payroll direct deposit and zero if not). 1. For the Community Bank knowledge, use SAS to formulate the estimated logistic regression equation. (5 marks) 2. Estimate the likelihood that customers with a median month-to-month steadiness of $1000 will join direct payroll deposit. (5 marks) three. Suppose Community Bank solely desires to contact customers who’ve a zero.50 or increased likelihood of signing up for direct payroll deposit. What’s the common month-to-month steadiness required to obtain this degree of likelihood? (10 marks) four. What’s the estimated odds ratio? What’s the interpretation? (15 mar
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vProblem 2 (35% of the time) – Bank.xlsx The number of customers who use payroll deposit at Community Bank would like to increase. Administration is contemplating launching a brand new gross sales marketing campaign through which every department supervisor is required to name each buyer who doesn’t at present use payoff direct deposit. Every buyer contacted might be supplied free checking for 2 years as an incentive to join payroll direct deposit. Due to the time and expense of the new marketing campaign, administration would like to focus its efforts on customers who’re more than likely to join payroll direct deposit. The common month-to-month steadiness in a buyer’s checking account, in accordance to administration, could also be a helpful predictor of whether or not the buyer will join direct payroll deposit.
