Estimating relation between different variables dependent variables and independent variables change in DV for any change in IV Applications forecasting, healthcare, economics, finance
Whether someone will respond or not to advertisements? Whether someone is a high default risk on a loan? Whether someone will buy or not buy? Whether the patient will responds to treatment or not? Whether a machine will fail next week?
Regression Analysis where DV is binary (0/1) – most common case Classify a new observation into a class based on its predictors Predictors can be categorical or continuous
Probability Odds Logit function Logistic function