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LOGISTIC REGRESSION 1
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PROBABILITIES AND ODDS
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Probabilities and odds
Odd (O*) is the ratio of probability of the occurence of the event and probability of the non-occurence of the event Practical example 2x2 table Interpretation (middle value =1, asymmetric scale, reversing of ration if O<1) * O will be used for odd
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Logistic regression Dep. var: binary or nominal/ordinal
Binary – only two values, impossible to directly model by linear regression (picture) Necessary to transform original dep. var. (see probability-odd-logit)
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Odds ratio Ratio of two odds – OR* * OR will be used for odd ratio
Practical example 2x2 table Interpretation (middle value =1, asymmetric scale, reversing of ratio if O<1) * OR will be used for odd ratio
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Why we should use odds and odds ratios?
Descriptive stats for contingency tables Decrease nr. of estimated parameters (see loglinear models) Change scale for probablity <0;1> into larger one <0;∞>
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LOGIT 7
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probability≠ odd ≠logit
Logarithm of odd or odds ratio Theoretical values? Conclusion: probability≠ odd ≠logit
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