engleski

How to Improve Interpretability of the Logistic Regression Model

Developing and interpreting a prediction model can be quite a difficult task especially when dealing with highly correlated variables. The aim of this paper is to demonstrate the application of factor analysis for the purpose of increasing overall interpretability of the logistic regression model. The results show that by conducting factor analysis prior to building regression model researchers can overcome some model interpretability issues, such as misalignment with theoretical background, and create a model that is easier to understand, explain and apply in real-life business situations.

factor analysis ; logistic regression ; interpretability ; growth prediction model

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