Question 17.32

17.32 Following brands through social media.

PricewaterhouseCoopers (PwC) surveyed 1000 online shoppers in the United States and China.11 One question asked if the online shopper followed brands they purchased through social media. Here are the results:

Social media
Country No Yes
United States 487 513
China 72 928
  1. What are the proportions of online shoppers who follow brands through social media in each country?
  2. What is the odds ratio for comparing U.S. online shoppers with Chinese online shoppers?
  3. Write the logistic regression model for this problem using the log odds of following brands through social media as the response variable and country as an indicator explanatory variable .
  4. Software gives the estimated slope and its standard error . Transform this result to the odds scale and compare it with your answer in part (b).
  5. Construct a 95% confidence interval for the odds ratio and write a short conclusion.