Questions-Follow-up for Raffaele Saggio

In the study design, is the Research Design and Methodology section OK as is? Given the change to Logit models in the analysis section.

Logit Model for Revenue from customers, iOS vs. Android. [Just ask question 2, form of the Logit model.] In a Logit model, the dependent variable,

y, is monthly spend on the app.o Why is a Logit Model appropriate? Or is the Logit model used for estimating

income and price elasticity and not for monthly spend based on mobile operating system and income?

Or do you create categories for spending like “High spending,” “Moderate spending,” and “Low spending”?

Show Raffaele an example of a Logit model and ask if that is correct.o Is this what you (Raffaele) had in mind for a Logit model?

Dependent Variable: Y = Monthly spend by customer in App 3 categories for Y: “High spend,” “Moderate spend,” and “Low

spend” Explanatory variables:

OS an indicator or dummy variable. 1 for iOS, 0 for Android. Disposable income, continuous variable.

What is the format to show this in the design study? Y_i=constant + B_1 x OS (dummy) + B_2 x Income + error

o Is the income variable, Y, ordered response data? Would the model be multinomial ordered response data? I think yes.

What model should I use for estimating income elasticity?