The logistic regression model

The logistic regression model arises from the desire to model the probabilities of the output classes given a function that is linear in x, just like the linear regression model, while at the same time ensuring that they sum to one and remain in the [0, 1] as we would expect from probabilities.

In this section, we introduce the objective and functional form of the logistic regression model and describe the training method. We then illustrate how to use logistic regression for statistical inference with macro data using statsmodels, and how to predict price movements using the regularized logistic regression implemented by sklearn.

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