Binary Regressions

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Regressions can sometimes go one of two ways, so either default or not defaulting on a loan, or have a stroke or not have a stroke. Binary variables.

Need to use a special model

• Logit
• Probit model

Used discreet and continuous variables in the model.

Relationshiip between discreet veriable is non-linear. Y variable is a 1 or a variable.