Transcription of Maximum Likelihood Estimation of Logistic Regression ...
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Maximum Likelihood Estimation of Logistic Regression Models: Theory and Implementation Scott A. Czepiel . Abstract This article presents an overview of the Logistic Regression model for dependent variables having two or more discrete categorical levels. The Maximum Likelihood equations are derived from the probability distribution of the dependent variables and solved using the Newton- Raphson method for nonlinear systems of equations. Finally, a generic implementation of the algorithm is discussed. 1 Introduction Logistic Regression is widely used to model the outcomes of a categorical dependent variable. For categorical variables it is inappropriate to use linear Regression because the response values are not measured on a ratio scale and the error terms are not normally distributed.
Maximum Likelihood Estimation of Logistic Regression Models 2 corresponding parameters, generalized linear models equate the linear com-ponent to some function of the probability of a given outcome on the de-pendent variable. In logistic regression, that function is the logit transform: the natural logarithm of the odds that some event will occur.
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