Discussion Post: Advanced Statistical Concepts and Business Analytics
Answer each of the following questions in detail and provide examples for better clarity wherever applicable. Provide in-text citations. In answering the following questions please include choice of significance level and the effect of p values
• Logistic Regression
o Explain the logistic regression model, the independent variables and the dependent variable, assumptions of the model, as well as the objectives
o Given the data, what approach is taken to construct the model?
o Explain the effect of multicollinearity in logistic regression, and how multicollinearity is detected
o Explain the hypotheses on coefficients of the regression and how the results of testing these hypotheses are interpreted about significance of these coefficients? Include both unidirectional and bidirectional situations
o How do you interpret the effect of significant coefficients?
o How are the distribution of the observed residuals of the constructed model tested for normality?
o What is the coefficient of determination, and what is its significance?
o How can the regression model be used for prediction?
• Discriminant Analysis
o Explain the discriminant analysis model, the independent variables and the dependent variable, assumptions of the model, as well as the objectives
o Given the data, what approach is taken to construct the model?
o Explain the effect of multicollinearity in discriminant analysis, and how multicollinearity is detected?
o Explain the hypotheses on coefficients of the model and how the results of testing these hypotheses are interpreted about significance of these coefficients? Include both unidirectional and bidirectional situations
o How do you interpret the effect of significant coefficients?
o How the distribution of the observed residuals of the constructed model are tested for normality?
o What is the coefficient of determination, and what is its significance?
o How can the model be used for prediction?
o What is the confusion matrix in discriminant analysis?
Textbook: Bowerman, B., Drougas, A. M., Duckworth, A. G., Hummel, R. M. Moniger, K. B., & Schur, P. J. (2019). Business statistics and analytics in practice (9th ed.). McGraw-Hill. ISBN 9781260187496.
The response must include a reference list. Using one-inch margins, double-space, Times New Roman 12 pnt font and APA style of writing and citations.