A very popular use of GLM is via logistic regression. This is the type of regression to use when your target variable is a binary value, that is, it can only take on two values. These two binary values usually take the form:
- Something occurred (binary value = 1)
- Something did not occur (binary value = 0)
These two values typically vary according to the type of industry. Here are some examples of binary responses in different industries:
- Marketing: Did the customer respond to a specific offer or not?
- Health care: Was a specific drug effective in treating a condition or was it not?
- Financial: Did a specific trading strategy lead to a profit or not?
- Web tracking: Did a customer abandon a shopping cart at the checkout or ...