Business Analytics (2nd Edition)
2nd Edition
ISBN: 9780321997821
Author: James R. Evans
Publisher: PEARSON
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Chapter 5, Problem 47PE
A formula in financial analysis is:
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(c) Because logistic regression predicts probabilities of outcomes, observations used to build a logistic regression model need not be independent.
A. false: all observations must be independent
B. true
C. false: only observations with the same outcome need to be independent
I ANSWERED: A. false: all observations must be independent.
(This was marked wrong but I have no idea why. Isn't this a basic assumption of logistic regression)
Business discuss
Spam filters are built on principles similar to those used in logistic regression. We fit a probability that each message is spam or not spam. We have several variables for each email. Here are a few: to_multiple=1 if there are multiple recipients, winner=1 if the word 'winner' appears in the subject line, format=1 if the email is poorly formatted, re_subj=1 if "re" appears in the subject line. A logistic model was fit to a dataset with the following output:
Estimate
SE
Z
Pr(>|Z|)
(Intercept)
-0.8161
0.086
-9.4895
0
to_multiple
-2.5651
0.3052
-8.4047
0
winner
1.5801
0.3156
5.0067
0
format
-0.1528
0.1136
-1.3451
0.1786
re_subj
-2.8401
0.363
-7.824
0
(a) Write down the model using the coefficients from the model fit.log_odds(spam) = -0.8161 + -2.5651 + to_multiple + 1.5801 winner + -0.1528 format + -2.8401 re_subj(b) Suppose we have an observation where to_multiple=0, winner=1, format=0, and re_subj=0. What is the predicted probability that this message is spam?…
Chapter 5 Solutions
Business Analytics (2nd Edition)
Ch. 5 - Lauren drinks a vanety of soft dnnks. Over the...Ch. 5 - Consider the experiment of drawing two cards...Ch. 5 - Three coins are dropped on a table. List all...Ch. 5 - A market research company surveyed consumers to...Ch. 5 - Prob. 5PECh. 5 - Prob. 6PECh. 5 - Prob. 7PECh. 5 - Prob. 8PECh. 5 - Prob. 9PECh. 5 - A survey of 200 college graduates who have been...
Ch. 5 - Prob. 11PECh. 5 - A survey of shopping habits found the percentage...Ch. 5 - Prob. 13PECh. 5 - Prob. 14PECh. 5 - Use the Civilian Labor Force data in the Excel...Ch. 5 - Prob. 16PECh. 5 - A home pregnancy test is not always accurate....Ch. 5 - In the scenario in Problem 2, what is the...Ch. 5 - In the roulette example described in Problem 7,...Ch. 5 - Prob. 20PECh. 5 - Prob. 21PECh. 5 - Prob. 22PECh. 5 - Prob. 23PECh. 5 - Based on the data in the Excel file Consumer...Ch. 5 - Prob. 25PECh. 5 - The Excel file Call Center Data shows that in a...Ch. 5 - If a cell phone company conducted a telemarketing...Ch. 5 - A popular resort hotel has 300 rooms and is...Ch. 5 - A telephone call center where people place...Ch. 5 - Prob. 31PECh. 5 - Prob. 32PECh. 5 - Prob. 33PECh. 5 - Prob. 34PECh. 5 - Prob. 35PECh. 5 - In determining automobile-mileage ratings, it was...Ch. 5 - Prob. 37PECh. 5 - Prob. 38PECh. 5 - A supplier contract calls for a key dimension of a...Ch. 5 - Historical data show that customers who download...Ch. 5 - A Iightbulb is warranted to last for 5,000 hours....Ch. 5 - Prob. 42PECh. 5 - Develop a procedure to sample from the probability...Ch. 5 - Prob. 44PECh. 5 - Prob. 45PECh. 5 - Prob. 46PECh. 5 - A formula in financial analysis is:...Ch. 5 - A government agency is putting a large project out...
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