In This Chapter

**The Rationale for Logistic Regression**

**The Distribution of the Residuals**

One of the tools of decision analytics is called *logistic regression*. This method actually isn’t any sort of regression at all: It uses maximum likelihood estimates (which are optimized probabilities, as you’ll see later in this chapter) instead of correlations to arrive at its solutions. The use of the word *regression* appears to be due to the similarity of the equations that result. For example, in ordinary, least squares multiple regression you might arrive at an equation that looks like this: ...

Start Free Trial

No credit card required