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