In Contrast to OLS Regression, in Logistic Regression the Change

question 15

Multiple Choice

In contrast to OLS regression, in logistic regression the change in the probability of y with a 1 unit change in the independent variable is ______.

• A) linear
• B) not constant
• C) constant
• D) quadratic

---

Definitions:

Hedging Risk

Hedging risk is a strategy used to reduce or eliminate the risk of loss from fluctuations in the prices of assets, currencies, or commodities, often through derivatives like options or futures.

S&P 500

An index representing the performance of 500 large companies listed on stock exchanges in the United States.

Market Portfolio

A theoretical bundle of investments that includes every available asset in the market, weighted by market capitalization.

U.S. Securities

Financial instruments issued by the U.S. government, corporations or other entities, including stocks, bonds, and treasury securities.