A test for the hit rate in binary response models

Binary response models are often applied in empirical marketing research wh ere, for example, individuals or households can be classified as buyers and non-buyers of certain products or as respondents and non-respondents to di rect mailing. One way to evaluate such models amounts to calculating the fr action of correctly classified cases, that is, the hit rare. This paper bri ngs to the attention a simple test for the statistical significance of this hit rate. An application to a binary brand choice case serves as an illust ration.