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LOGISTIC REGRESSION
Logistic Regression
 •   Form of regression that allows the prediction of
     discrete variables by a mix of continuous and
     discrete predictors.
 •   Addresses the same questions that discriminant
     function analysis and multiple regression do but
     with no distributional assumptions on the
     predictors (the predictors do not have to be
     normally distributed, linearly related or have
     equal variance in each group)
Types of logistic regression
 BINARY LOGISTIC REGRESSION
 It is used when the dependent variable is
 dichotomous.

MULTINOMIAL LOGISTIC REGRESSION
 It is used when the dependent or outcomes
 variable has more than two categories.
Binary logistic regression expression


BINAR
  Y
        Y = Dependent Variables
        ß˚ = Constant
        ß1 = Coefficient of variable X1
        X1 = Independent Variables
        E = Error Term
Logistic Regression
In logistic regression the outcome variable is binary,
  and the purpose of the analysis is to assess the
  effects of multiple explanatory variables, which
  can be numeric and/or categorical, on the
  outcome variable.
When and Why Binary Logistic
             Regression?
     When the dependent variable is non parametric
      and we don't have homoscedasticity (variance of
      DV and IV not equal).
     Used when the dependent variable has only two
      levels. (Yes/no, male/female, taken/not taken)
     If multivariate normality is suspected.
     If we don’t have linearity.




7
Who uses it in Plain words.
     Binary Logistic Regression can be used in the following
      situations.
       A catalog company wants to increase the proportion of mailings
        that result in sales.
       A doctor wants to accurately diagnose a possibly cancerous tumor.
       A loan officer wants to know whether the next customer is likely
        to default.
     Using the Binary Logistic Regression procedure, the catalog
      company can send mailings to the people who are most likely
      to respond, the doctor can determine whether the tumor is
      more likely to be benign or malignant, and the loan officer can
      assess the risk of extending credit to a particular customer.

8
3. SAMPLE SIZE

 Very small samples have so much sampling errors.
 Very large sample size decreases the chances of
  errors.
 Logistic requires larger sample size than multiple
  regression.
 Hosmer and Lamshow recommended sample size
  greater than 400.
SAMPLE SIZE PER CATEGORY OF THE INDEPENDENT
                  VARIABLE



      The recommended sample size for each group
      is at least 10 observations per estimated
      parameters.
ASSUMPTIONS


     No assumptions about the distributions of the
      predictor variables.
     Predictors do not have to be normally distributed
     Does not have to be linearly related.
     Does not have to have equal variance within each
      group.
     There should be a minimum of 20 cases per
      predictor, with a minimum of 60 total cases.
      These requirements need to be satisfied prior to
      doing statistical analysis with SPSS.

1
1
We will now go to SPSS for
     analysis.
     Analyze  regression  binary logistic
     Algebra 2 = gender + mosaic +
     visualization test and parents education




13

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Logistic regression

  • 2. Logistic Regression • Form of regression that allows the prediction of discrete variables by a mix of continuous and discrete predictors. • Addresses the same questions that discriminant function analysis and multiple regression do but with no distributional assumptions on the predictors (the predictors do not have to be normally distributed, linearly related or have equal variance in each group)
  • 3. Types of logistic regression  BINARY LOGISTIC REGRESSION It is used when the dependent variable is dichotomous. MULTINOMIAL LOGISTIC REGRESSION It is used when the dependent or outcomes variable has more than two categories.
  • 4. Binary logistic regression expression BINAR Y Y = Dependent Variables ß˚ = Constant ß1 = Coefficient of variable X1 X1 = Independent Variables E = Error Term
  • 5. Logistic Regression In logistic regression the outcome variable is binary, and the purpose of the analysis is to assess the effects of multiple explanatory variables, which can be numeric and/or categorical, on the outcome variable.
  • 6. When and Why Binary Logistic Regression?  When the dependent variable is non parametric and we don't have homoscedasticity (variance of DV and IV not equal).  Used when the dependent variable has only two levels. (Yes/no, male/female, taken/not taken)  If multivariate normality is suspected.  If we don’t have linearity. 7
  • 7. Who uses it in Plain words.  Binary Logistic Regression can be used in the following situations.  A catalog company wants to increase the proportion of mailings that result in sales.  A doctor wants to accurately diagnose a possibly cancerous tumor.  A loan officer wants to know whether the next customer is likely to default.  Using the Binary Logistic Regression procedure, the catalog company can send mailings to the people who are most likely to respond, the doctor can determine whether the tumor is more likely to be benign or malignant, and the loan officer can assess the risk of extending credit to a particular customer. 8
  • 8. 3. SAMPLE SIZE  Very small samples have so much sampling errors.  Very large sample size decreases the chances of errors.  Logistic requires larger sample size than multiple regression.  Hosmer and Lamshow recommended sample size greater than 400.
  • 9. SAMPLE SIZE PER CATEGORY OF THE INDEPENDENT VARIABLE  The recommended sample size for each group is at least 10 observations per estimated parameters.
  • 10. ASSUMPTIONS  No assumptions about the distributions of the predictor variables.  Predictors do not have to be normally distributed  Does not have to be linearly related.  Does not have to have equal variance within each group.  There should be a minimum of 20 cases per predictor, with a minimum of 60 total cases. These requirements need to be satisfied prior to doing statistical analysis with SPSS. 1 1
  • 11. We will now go to SPSS for analysis. Analyze  regression  binary logistic Algebra 2 = gender + mosaic + visualization test and parents education 13