Please give full solution 1. Exhibit 9-3. Simmons owns and operates a national chain of department stores. Simmons wants to send an expensive sales catalog with a “30% off” coupon only to those...

Please give full solution

1.

Exhibit 9-3.Simmons owns and operates a national chain of department stores. Simmons wants to send an expensive sales catalog with a “30% off” coupon only to those customers who have a sufficiently high probability of using the coupon. Management thinks that the decision should depend on  x1= annual spending at Simmons ($1000) and

Assuming

and,

the logistic regression was run in Data Mining and the following output for the logit, , was obtained:

Refer to Exhibit 9.3.  What is the predicted probability of using the coupon by a customer who spends $3000 annually and does not have a Simmons credit card?

2.

The profit realized by the sales of a particular item follows a normal distribution with a mean of $0.5 million per quarter and a standard deviation of $0.1 million per quarter. What percent of the quarters can be expected to see a profit of at least $0.7 million?