Logistic regression model, Basic Statistics

Assignment Help:

Model 1:  Let's consider the logistic regression model, which we will refer to as Model 1, given by

log(pi / [1-pi]) = 0.25 + 0.32*X1 + 0.70*X2 + 0.50*X3                         (M1),

Where X3 is an indicator variable with X3=0 if the observation is from Group A and X3=1 if the observation is from Group B.  The likelihood value for this fitted model on 100 observations is 850.

(1)     For X1=2 and X2=1 compute the log-odds ratio for each group, i.e. X3=0 and X3=1.

(2)     For X1=2 and X2=1 compute the odds ratio for each group, i.e. X3=0 and X3=1.

(3)     For X1=2 and X2=1 compute the probability of an event for each group, i.e. X3=0 and X3=1.

(4)    Using the equation for M1, compute the relative odds associated with X3, i.e. the relative odds ratio of Group B compared to Group A.

(5)    Use the odds ratios for each group to compute the relative odds of Group B to Group A.   How does this number compare to the result in Question #4.  Does this make sense?

Model 2:  Now let's consider an alternate logistic regression model, which we will refer to as Model 2, given by

log(pi / [1-pi]) = 0.25 + 0.32*X1 + 0.70*X2 + 0.50*X3 + 0.1*X4       (M2),

Where X3 is an indicator variable with X3=0 if the observation is from Group A and X3=1 if the observation is from Group B.  The likelihood value from fitting this model to the same 100 observations as M1 is 910.

(6) Use the G statistic to perform a likelihood ratio test of nested models for M1 and M2.  State the hypothesis that is being tested, compute the test statistic, and test the statistical significance using a critical value for alpha=0.05 From these results should we prefer M1 or M2?


Related Discussions:- Logistic regression model

Find mode and median, The following data shows marks obtained by 40 student...

The following data shows marks obtained by 40 students in a Statistics test. 75 99 72 54 25 40 65 32 69 10 85 48 52 80  63 64 35 62 51 71 67 57 95 74 56 69 61  49 45 63 39

Velocity, A car moves with constant velocity along a straight road. Its pos...

A car moves with constant velocity along a straight road. Its position is x1 = 0m at t1 = 0 seconds and is x2 = 56 m at t2 = 5.0 s. what is the cars position at t=2.5 seconds and

Statistical analysis of hedge funds returns, In this problem set we are goi...

In this problem set we are going to analyze returns of indices for three hedge funds strategies (market neutral, risky arbitrage, long/short). The indices are constructed by CSFB/T

Probability, A bag contain 5 white, 7 red and 8 black balls. If four balls ...

A bag contain 5 white, 7 red and 8 black balls. If four balls are drawn one by one without Replacement, find the probability of getting all white balls.

FIFO, how to figure out cost of good available for sale, cost of sales, end...

how to figure out cost of good available for sale, cost of sales, ending inventory

Project, The trial balance of the Parton Wholesale Company contained the fo...

The trial balance of the Parton Wholesale Company contained the following accounts at December 31, 2010 the end of the company’s calendar year. PARTON WHOLESALE COMPANY Trial Bala

Cost accounting, Significant discussion has occurred in the literature on m...

Significant discussion has occurred in the literature on making management accounting more relevant to the current business environment, which is dominated by discussions of global

Mean - median and frequencies, Put the appropriate summary statistics, e.g....

Put the appropriate summary statistics, e.g. mean, median, frequencies, percentages, for the different variables into a table to make them concise. You can see examples of consise

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd