Brand choice and logit models - Logit models - Odds ratios
3 important questions on Brand choice and logit models - Logit models - Odds ratios
What question is answered with predictor values in logit models?
"For customers with this profile, what are the odds that the customer will buy our brand vs another brand?" Talking about odds.
What is an odds ratio?
Directly comparing odds by dividing one by the other.
- O.R.=(o11/o21) / (o12/o22)
- O.R.=(o11*o22) / (o12*o21)
- with o being observed values.
What is Yule's Q?
Q ranges from -1 to 1 and equals 0 when there is no association.
- Q = (O.R. - 1) / (O.R. + 1) = ((o11o22) - (o12o21)) / ((o11o22) + (o12o21))
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