AppliedMultiple choice
Reading a logistic regression · Part 2 of 3
A logistic regression predicts whether a stock beats the market next month from a standardised signal : .
How should the coefficient of 0.4 on the signal be read?
- AEach standard deviation of signal adds 0.4 to the probability of beating the market
- BEach standard deviation multiplies the odds of beating the market by about 1.49
- CEach standard deviation raises the probability by 40% of its current value
- DEach standard deviation multiplies the probability itself by about 1.49
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Generalised models: logistic, Poisson and quantile regression
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