Logistic regression falls under the umbrella of discrete choice theory. Do some research and in your own words explain what this is. How is it useful in marketing? What does it do that regular regression cannot?
EXPLANATION:
Logistic regression predict outcome of an event in binary mode, which is 0 and 1. Zero represent the non-occurrence of the event and 1 represent the occurrence of the event. Discrete choice theory is when predict choice is between two or more alternatives. Like entering in to the market(0) or not entering in the market(0). Policy is going to lapse (1) or not going to lapse (0).Therefore, a regression of logistics takes place in the discrete choice principle, as it estimates that the production will be generated in two alternative versions yes or no. For marketing purposes, it is useful to forecast the selling of a product, to determine sales demand on the market, and to assess the price of the product.
Logistic regression falls under the umbrella of discrete choice theory. Do some research and in your...
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