MRA Assignment

Group - 5

Logistic
Regression

Section - D
Karan Sharma (P 39198)
Manoj K Reddy(P 39199)
Mrityunjay Panday (P 39208)
Navin K. S (P39209)
 MRA Assignment Logistic Regression

After running Logistic regression on data, we achieved below details. The data included all the
samples none of the samples was missing. We took income as independent variable and cluster
grouping as dependent variable.
Case Processing Summary

Unweighted Cases N Percent

Selected Cases Included in Analysis 28 100.0

Missing Cases 0 .0

Total 28 100.0
Unselected Cases 0 .0
Total 28 100.0

a. If weight is in effect, see classification table for the total number of cases.

In internal coding, the SPSS has coded cluster membership 3 as 1 internal value and cluster
membership 1 as 0 internal value.
Thus to the membership of where person lies i.e overall 0 or 1 value.
Thus expected value of where a person lies = 0*P(Y=0/X) + 1*P(Y=1/X).
We are considering membership in particular cluster given value of independent variable X
(income).
Dependent Variable Encoding

Original Value Internal Value

1 0
3 1

====================================================================
In step, 0 of analysis the SPSS predict that all samples lies in cluster-3 i.e having internal value 1.
Till now it consider only dependent variable for interpretation.

Classification Tablea,b

Predicted

Cluster Number of Case Percentage

Observed 1 3 Correct

Step 0 Cluster Number of Case 1 0 12 .0

3 0 16 100.0

Overall Percentage 57.1

a. Constant is included in the model.

b. The cut value is .500
Now after taking into account income as independent variable it counts the samples belonging in
the Cluster-1 & 3 independently. And it interpret the results accordingly.

Classification Tablea

Predicted

Cluster Number of Case Percentage

Observed 1 3 Correct

Step 1 Cluster Number of Case 1 12 0 100.0

3 0 16 100.0

Overall Percentage 100.0

a. The cut value is .500

In step 0 considering only dependent variable we have tried to find out the probability odds in
favour of cluster 3 turned out to be 0.571. We calculated the odds by odds in favour/odds in
against. Considering falling in cluster 3. We have applied logistic regression equation for the
same (e^a+bx/(1+e^a+bx). The result by manual and SPSS calculation were same as can also be
viewed step-0 table of SPSS.
Internal Count of
Row Label Value Cluster Percentage
1 0 12 43%
3 1 16 57%

Probability Of CL-3 0.571

Probability Of not in CL-3 0.429
Odds 1.333
Log odds 0.288
Probability From Odds 0.571

Variables in the Equation

B S.E. Wald Df Sig. Exp(B)

Step 0 Constant .288 .382 .568 1 .451 1.333

=====================================================================
Step - 1

Variables in the Equation

B S.E. Wald df Sig. Exp(B)

a
Step 1 INCOME .007 .729 .000 1 .993 1.007

Constant -278.858 31069.786 .000 1 .993 .000

a. Variable(s) entered on step 1: INCOME.

From the table equation developed is

Log(P/1-P)=Logit(P)= -278.858+0.007*Income
Here -278.858 gives value of logit when income is zero. The odds of being a member of cluster 3
is thus e^(-278.858) = 0. Thus with zero income no one is in cluster 3.
With unit increase in income logit changes by 0.007 i.e e^ (0.007) gives a change of ~0.7.
Similarly the cluster membership member ship for cluster 3 will increase.
Significance level –
We know that, lower the significance value (0.05), the null hypothesis is accepted. Here the SV
is very high indicating the null hypothesis i.e cluster membership is dependent on income should
go. So it becomes null and void (statistically insignificant) for us to consider the income as
independent variable in deciding membership of the respondent.