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Logistic-Regression-An-Introduction

Logistic regression is a statistical method used to predict binary outcomes by outputting probabilities between 0 and 1, utilizing the sigmoid function. It involves data preparation, model training, and thresholding to classify predictions, and is commonly applied in fields such as credit risk, medical diagnosis, and fraud detection. While it is easy to interpret and efficient, it has limitations including assumptions of linearity in log-odds and sensitivity to multicollinearity.

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3 views

Logistic-Regression-An-Introduction

Logistic regression is a statistical method used to predict binary outcomes by outputting probabilities between 0 and 1, utilizing the sigmoid function. It involves data preparation, model training, and thresholding to classify predictions, and is commonly applied in fields such as credit risk, medical diagnosis, and fraud detection. While it is easy to interpret and efficient, it has limitations including assumptions of linearity in log-odds and sensitivity to multicollinearity.

Uploaded by

kanishka.ks811
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Logistic Regression: An

Introduction
Logistic regression predicts binary outcomes, such as yes/no decisions.

Unlike linear regression, it outputs probabilities from 0 to 1.

DS by Dwip Sahajee
The Logistic Regression
Equation
Sigmoid Function Equation
Transforms values into a p = 1 / (1 + e^2(b0 + b1x1 + ...))
probability between 0 and 1. predicts probability.

Coefficients
Indicate changes in log-odds for each predictor variable.
How Logistic Regression
Works
Data Preparation
Clean and organize data for analysis.

Model Training
Maximize likelihood of observed outcomes.

Thresholding
Convert predicted probabilities into classifications.
Applications of Logistic
Regression

Credit Risk Medical Marketing


Diagnosis

Fraud Detection

Example: Email spam detection classifies messages as spam or not spam.


Advantages and Limitations
Advantages Limitations
Easy to interpret and implement Assumes linear relation in log-odds
Fast and efficient training Sensitive to multicollinearity
Probabilistic output Underperforms for complex patterns
Summary
Powerful Tool Key Insights
Widely used for binary Understand its assumptions
outcome prediction. and output probabilities.

Real-World Use
Predict if a customer will click an ad.

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