Based on the above binary logit model, the probability of bu…

Based on the above binary logit model, the probability of buy (i.e., P(buy=1) in the discounted group (i.e., discount=1) is (1)___________(a. higher, b. smaller; 2 points) than that of the non-discounted group (i.e., discount =0) at statistically (2) _______________ (a. insignificant, b. significant 10%, c. significant 5%, d. significant 1%; 2 points). In terms of marketing mix (price, product, promotion, and place), the result indicates the effect of the promotion on consumer demand is positive. 

Based on the above binary logit model, the probability of bu…

Based on the above binary logit model, the probability of buy (i.e., P(buy=1) in the city 3 (i.e., C(city)=1, St. Louis) is (1)___________(a. higher, b. smaller; 1 points) than that of the base group (2)__________(a. Rolla,   b. Kansas City, c. St. Louis; 2 points) at statistically (3) _______________ (a. insignificant, b. significant 10%, c. significant 5%, d. significant 1%; 1 point).

Note: Please clearly label your answers submission sheet by…

Note: Please clearly label your answers submission sheet by section (Parts 1-4) and question number so it is straightforward to grade.  Part 4:   True/False/Uncertain with explanation (30 points, 5 each) In this section, answer whether the statement is True, False or Uncertain and explain why. Note: assume that any statements written in italics are true, these are just setting up relevant scenarios. You must explain your answer. Explanation determines the grade!!   Imagine the economy is at potential Y*. With contractionary monetary policy (decreasing M), the Fed can permanently reduce the price level, by accepting a temporary recession (Y