July 2017
Beginner to intermediate
442 pages
10h 8m
English
Content preview from Statistics for Machine Learning
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Logistic regression – introduction and advantages
Logistic regression applies maximum likelihood estimation after transforming the dependent variable into a logit variable (natural log of the odds of the dependent variable occurring or not) with respect to independent variables. In this way, logistic regression estimates the probability of a certain event occurring. In the following equation, log of odds changes linearly as a function of explanatory variables:
One can simply ask, why odds, log(odds) and not probability? In fact, this is interviewers favorite question in analytics interviews.
The reason is as follows:
By converting probability ...
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