Logistic Regression Uses the Log-Likelihood Statistic to Evaluate the Fit

question 21

Multiple Choice

Logistic regression uses the log-likelihood statistic to evaluate the fit of a model, based on the predicted and observed values, and is closely related to the deviance, but how is deviance expressed?

• A) Deviance = -2 × log-likelihood
• B) Deviance = -2 / log-likelihood
• C) Deviance = log-likelihood / (-2)
• D) Deviance = log-likelihood / ((-2) × (-2))

---

Definitions:

Profit and Loss Allocation

Profit and Loss Allocation involves distributing a business’s profits and losses among its various stakeholders or business areas.

Journal Entry

The record of a financial transaction in the accounting records of a business.

Other Assets

Assets that don't fit into the main categories of current assets, property, plant, equipment, or intangible assets.

Liquidation

The process of closing a business and distributing its assets to claimants.