The Analytics Edge

3.2 Modeling the Expert: An Introduction to Logistic Regression

Quick Question

Which of the following dependent variables are categorical? (Select all that apply.)

Deciding whether to buy, sell, or hold a stock check

 

The weekly revenue of a company close

 

The winner of an election with two candidates check

 

The day of the week with the highest revenue check

 

The number of daily car thefts in New York City close

 

Whether or not revenue will exceed $50,000 check

 

Check   Show Solution

Explanation The weekly revenue of a company is not categorical, since it has a large number of possible values, on a continuous range. The number of daily car thefts in New York City is also not categorical because the number of car thefts could range from 0 to hundreds. On the other hand, the other options each have a limited number of possible outcomes.

Which of the following dependent variables are binary? (Select all that apply.)

Deciding whether to buy, sell, or hold a stock close

 

The weekly revenue of a company close

 

The winner of an election with two candidates check

 

The day of the week with the highest revenue close

 

The number of car thefts in New York City close

 

Whether or not revenue will exceed $50,000 check

 

Check   Show Solution

Explanation The only variables with two possible outcomes are the winner of an election with two candidates, and whether or not revenue will exceed $50,000.

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• Continue: Video 3: Logistic Regression