LR is one of the most widely used classifiers to predict a binary response. It is a linear ML method, as described in Chapter 1, Analyzing Insurance Severity Claim. The loss function is the formulation given by the logistic loss:
For the LR model, the loss function is the logistic loss. For a binary classification problem, the algorithm outputs a binary LR model such that, for a given new data point, denoted by x, the model makes predictions by applying the logistic function:
In the preceding equation, z = WTX and if ...
