Continuous output: logistic vs linear regression

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SUMMARY

This discussion centers on the comparison between linear regression and logistic regression for analyzing continuous output variables. Linear regression is preferred when the output is continuous, as it provides a direct estimate of the slope and the relationship between variables. Logistic regression is primarily designed for binary outcomes, such as gender or loan default, and is only relevant for continuous variables in specific cases, such as when the data is bimodal. The consensus is that unless the output is inherently binary or the data distribution justifies it, linear regression remains the more appropriate analytical tool.

PREREQUISITES
  • Understanding of linear regression and its application in statistical analysis.
  • Familiarity with logistic regression and its use in binary classification problems.
  • Knowledge of OLS (Ordinary Least Squares) regression techniques.
  • Ability to interpret scatter plots and regression outputs, including slope and confidence intervals.
NEXT STEPS
  • Explore advanced linear regression techniques, including polynomial regression and interaction terms.
  • Investigate the conditions under which logistic regression is applicable to continuous variables.
  • Learn about model diagnostics for linear regression, including checking for outliers and assumption violations.
  • Study the implications of bimodal distributions on regression analysis and how to handle them effectively.
USEFUL FOR

This discussion is beneficial for data analysts, statisticians, and researchers who are evaluating the appropriate regression techniques for their data analysis projects, particularly those dealing with continuous and binary outcome variables.

FallenApple
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so say I suspect that there is a positive trend in the data from the scatter plot. Say the output y is continuous.

A linear regression would give me a possitive estimate of the slope. For a one unit increase in x, I would get a so and so increase in y.

I can also split the data for the y variable between high and low, dichotomizing it. And calculate the estimated increase in log odds for a one unit increase in x.

Is there even a point in doing so?

It seems like the question can be answered using linear regression.

I don't see the point in using logistic regression unless the output is necessarily binary (gender, political affiliation etc)

Even if we are interested in a output of,say,having high income vs low income, you can just have income as a continuous spectrum and use ols to get the answer.

Is there something I'm missing?
 
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Yes, logistic regression was designed for cases with a binary result, like death or loan default. The only circumstance in which I can imagine it might be worth considering a logistic regression for a continuous result variable is where the variable's distribution is strongly bimodal, with nearly all values clustering around one or the other of two widely separated points, and very low probability densities in between. Even then I'm not sure what value it would add, but it might add something.
 
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andrewkirk said:
Yes, logistic regression was designed for cases with a binary result, like death or loan default. The only circumstance in which I can imagine it might be worth considering a logistic regression for a continuous result variable is where the variable's distribution is strongly bimodal, with nearly all values clustering around one or the other of two widely separated points, and very low probability densities in between. Even then I'm not sure what value it would add, but it might add something.

That makes sense. Because we can meaningfully cut the data and categorize it between high and low values. If the data were not bimodal, then we can't make a meaningful cut and any logistic analysis that follow would only give the log odds of passing that cut, which isn't even valid in the first place.
 
If your data has outliers, or if it violates any assumptions of the OLS regression, and provided you are looking for a binary answer, it could be a good idea to transform the response variable to a binary one and do a logistic regression instead. It would be interesting to compare both though!
 
Last edited:
FallenApple said:
so say I suspect that there is a positive trend in the data from the scatter plot. Say the output y is continuous.

A linear regression would give me a possitive estimate of the slope. For a one unit increase in x, I would get a so and so increase in y.

I can also split the data for the y variable between high and low, dichotomizing it. And calculate the estimated increase in log odds for a one unit increase in x.

Is there even a point in doing so?

It seems like the question can be answered using linear regression.

I don't see the point in using logistic regression unless the output is necessarily binary (gender, political affiliation etc)

Even if we are interested in a output of,say,having high income vs low income, you can just have income as a continuous spectrum and use ols to get the answer.

Is there something I'm missing?

It depends. If you want to spot a trend, check regression. The output will tell you whether there is a "reasonable" linear regression ( if the confidence interval of the slope does not include 0 ); you also check the value of the coefficient r, so that is "high-enough". As Andrew said, logistic regression is most often used in classification: you set up a cutoff point , e.g., you have a yes beyond your chosen cutoff point and a no otherwise.
 

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