In this chapter, you learned how to build a logistic regression model and what the best business situations in which such a model is applied are. It also taught you the theory and application aspects of logistic regression. Finance is the main domain where logistic regression is used to build different kind of score cards.
In last 10 years, the use of logistic regression to predict the risk of a risk for given patient has increased. Apart from healthcare, logistic regression is also used in marketing analytics to predict whether the customer will buy a particular product or not. Chapter 5, Linear Regression in Stata, and this chapter cover linear regression and logistic regression, which form the basis of the current analytics industry where two of these modeling techniques are widely used and leveraged in order to make decisions.
