Logistic Regression Is Used When You Want to

question 31

Multiple Choice

Logistic regression is used when you want to

• A) predict a categorical variable from continuous or categorical variables.
• B) predict a continuous variable from categorical variables.
• C) predict any categorical variable from other categorical variables.
• D) predict a continuous variable from a categorical variable.

---

Definitions:

European Option

A type of financial derivative that gives an investor the right, but not the obligation, to buy or sell an asset at a specified price on the option's expiration date.

Warrant

A financial instrument that gives the holder the right, but not the obligation, to buy a company's stock at a specific price before a certain date.

Convertible Bond

A financial instrument that can be transformed into a certain number of the issuer's shares at various points in its existence, most often per the discretion of the individual possessing the bond.

Putable Bond

A type of bond that gives the holder the option to require the issuer to repurchase the security before its maturity date at a predetermined price.